When a workers' compensation policy is written, the premium is based on your business' estimated annual payroll and assumed risks for the specified policy period. After the policy period expires, a premium audit is conducted to review your actual payroll to calculate the final premium.
What to expect during a premium audit:
Basic records including, but not limited to the information listed below, will be requested.
• Company information
- Ownership information
- Business address
- Phone and fax numbers
• Accountant contact information, if applicable
• Changes about the company during the policy period
• Average number of employees
The following business records that relate to how your premium is calculated will also be necessary for the audit.
• Tax reports
• Payroll records, including documentation of any overtime hours
• Bank statements and check registers
• General accounting ledgers
• Subcontract information
During the premium audit process the premium auditor will also review your documentation to see if you qualify for credits that can reduce your final premium. One of the credits many policymembers take advantage of is overtime credit. Based upon your payroll records, CompSource Mutual may allow you to exclude overtime wages from the payroll used to calculate your workers' compensation premium for each class code.
Following the audit, a summary of the results will be mailed to you.
For a more in-depth explanation of the process, see CompSource Mutual’s "Understanding the Premium Audit Process" brochure.
Additional questions regarding the premium audit process can be answered by calling CompSource Mutual's premium audit department at (405) 232-7663, ext. 5528 or (800) 347-3863, ext. 5528.