Tips for a Successful Audit
An audit is an annual review of your records, books, payroll, and operation to determine the actual exposures for the coverage provided. The purpose of an audit is to ensure you pay only the appropriate premium for the operation of your business. Your payroll can be estimated at the beginning of your coverage period or reported on an actual basis throughout the year. In either case, the audit will determine the actual premium that is due and payable.
At time of audit, the Premium Auditor will need the following information in order to conduct your audit:
- Journals
- Ledgers
- Check Stubs
- 941s
- State Unemployment Records
- Cash Disbursements
- Certificates of Insurance
The Auditor determines your Workers' Compensation premium based on payroll and remuneration. Remuneration includes all of the following:
| Gross Wages | Overtime |
| Commissions | Profit Sharing Plans |
| Incentives | Holiday, Vacation Pay |
| Bonuses | Value of Boarding, Lodging |
| Sick Pay | Payment for Piece Work |
Remuneration does not include:
- Reimbursement for tips and other gratuities
- Employer payment to group insurance or pension plans
- Severance pay
If you have questions regarding your audit please call 601-981-4440.