What You Need to Know About Workers’ Compensation

Q: I have a pay-as-you-go policy.  Why do I have an audit?

Every Workers’ Comp. policy is subject to an audit.  However, having a pay-as-you-go policy can help minimize the impact of a premium audit because premium is based on actual payroll and not estimated payroll.

Q: Can my audit balance due be billed in installments?

You can request a payment plan for your balance due by emailing [email protected].

Q: Do I need to send a check for my audit balance?

If your policy is with Travelers Insurance, E-COMP will deduct these funds from the same account that we have used to bill your premium. You will receive a notice 2 days prior to the withdrawal.

If your policy is with any other insurance carrier, you will receive an invoice and payment instructions directly from the carrier.

Q: My audit was estimated, what does this mean?

Your insurance carrier estimated your audit because they could not reach you for additional information. Email [email protected] and we will assist you with getting your audit revised.

Q: I have questions about my audit, who can I contact?

We are happy to answer any questions related to your audit, email [email protected] and you will receive a response within 1 business day.

Q: What if I don’t agree with the audit findings?

You can email [email protected] and we can assist you with disputing your audit findings.

Q: Why does my audit result in a balance due?

There are a number of reasons why an additional amount may be due:

• Taxes and Fees were under collected because payroll was lower than estimated.  Some taxes and fees are a percentage of your payroll, and some are fixed amounts.  If actual payroll varies greatly from your original estimate, then some of the fixed fees will not calculate to the exact amount.  For that reason, it’s common that a small amount may be due at audit.

• Employees were reclassified from one class code to another based on their job functions

• There were unreported wages that were included in the audit (some possible wage inclusions are contract labor, included officers, value of lodging)

• A Waiver of Subrogation was added mid-term

• Your experience modifier changed mid-year and the change was retroactive to your policy start date

• Your policy is subject to a minimum premium that wasn’t met

• Your policy was cancelled mid-term and a short rate penalty applies or taxes and fees were not fully collected