Your workers' compensation insurance policy was issued based upon estimated payroll figures and classification. During the policy year, changes may occur in your operation. When your policy expires, we will review your operations and actual payroll by classification, and make the appropriate adjustments to calculate a final audit premium (this may result in an additional balance due, a refund, or potential changes to your current policy).
Voluntary Audit, Remote Physical Audit, and On-site Physical Audit are available options. The type of audit you qualify for is based on your business location(s), policy size, and the type of industry in which you operate. Please refer to the Premium Audit home page for further explanation of each audit type.
A voluntary audit form is sent for you to complete and return to EMPLOYERS through mail, e-mail, or fax. The first page will provide instructions regarding the audit and required information. The following pages are for you to fill out and complete. The last page contains our noncompliance policy. Please return the document by the due date provided on the form.
Your workers' compensation insurance policy was written with estimated figures. You are required to provide us your actual payroll information and operations of the business. We use this information to determine your actual premium.
To simplify the audit process and avoid any interruptions caused by an On-site Physical Audit, we are proud to offer a Remote Physical Audit option. You will receive a letter requesting payroll records for your company (such as: 941s, State Unemployment Forms, and a Payroll Journal). Once you have submitted the requested documentation to EMPLOYERS, an experienced representative from the Premium Audit Team will contact you to discuss your payroll information and business operations.
You will receive a letter requesting payroll records for your company (such as: 941s, State Unemployment Forms, and a Payroll Journal). Once you send the requested documents to EMPLOYERS, an experienced representative from the Premium Audit Team will contact you to visit your business location(s) to conduct the audit.
If you fail to comply with a Premium Audit, we may cancel your current policy, if any, or increase your final audit premium and you may be ineligible for an experience modification.
After your audit is completed, we will mail you an explanation of your audit results which includes a premium invoice.
Most states have a fee schedule for a variety of purposes. The fees are most commonly used for the following:
- Insurance guarantee funds to guard against insolvent carriers
- Administrative surcharges to fund rating and administrative organizations
- Fraud assessments to finance anti-fraud programs
- Benefit funds to protect uninsured injured workers
- Terrorism Risk Insurance Act of 2002 (TRIA), as amended, is a federal law that provides funding to carriers following a declared act of terrorism
- These fees are mandatory in the states in which they apply.
In some states the premium overtime, sometimes called ‘excess overtime,’ is excludable from workers compensation insurance. Premium overtime is the amount paid over an employee’s regular hourly rate. For example, an employee works 50 hours in a week; the employee’s regular hourly rate is $10 per hour and the overtime rate is $15 per hour.
|
Hours |
Rate |
Pay |
Premium |
WC Exposure |
|
|
Regular |
40 |
$10 |
$400 |
$400 |
|
|
Overtime |
10 |
$15 |
$150 |
$50 |
$100 |
|
Total |
50 |
$550 |
$50 |
$500 |
An easy way to calculate the premium or excess portion of overtime is to divide the total gross overtime by 3.
If you conduct business in California, you may qualify to exclude your employees’ contributions to a Section 125 plan. Health Savings Account (HSA) contributions can be deducted in most states. In California, the HSA must be part of a Section 125 plan in order for these amounts to be deducted.
Any employee contributions to a 401(k) plan are always included in determining your premium.
To request a copy of the auditor’s report, please e-mail us at Auditinquiries@employers.com. You may also fax your request to 888-980-5455. Please be sure to provide your company’s name (as it appears on the policy) and your policy number.
To request a review of your final Premium Audit, please provide a written request to the Premium Audit Department at Auditdisputes@employers.com or by fax 888-966-5656. Please be sure to include the reason for your request, any supporting facts and/or documents, your contact information, and an ideal day/time for a Premium Audit representative to contact you.
Telephone: 888-682-6671
E-mail: Auditinquiries@employers.com.
Fax: 888-980-5455
You can submit your Voluntary Audit Form to:
Auditinfo@employers.com or fax 818-956-3490
To encrypt your voluntary audit form submission please call us at 888-682-6671 and an auditor would be happy to setup a secure encrypted e-mail file transmission.
