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Preparing for the Premium Audit: A helpful flow chart

There is a very good chance that you will be overcharged on your premium audit. You know your business better than anyone else. Therefore, the best approach is to proactively develop a defensible position by preparing thoroughly and building an overcharge-proof audit package before the auditor arrives. Carefully review the payroll classifications and current list of “excluded remuneration.” Think how you can make a minor job duty or physical plant change to qualify an employee for a lower cost classification. Assign a knowledgeable and friendly staff person to work with your Certified WorkComp Advisor (CWCA), so that he or she thoroughly understands the audit.

When the audit occurs, present the audit package and treat the auditor as a welcome guest. Offer no gratuitous information to the auditor and be sure that the assigned staff person escorts the auditor around the premises, if needed. Employees may volunteer information that incorrectly impacts the audit; therefore, it is important to have the knowledgeable staff person involved in all conversations.

After the audit, complete a premium audit checklist to confirm that you are not overpaying and obtain copies of the auditor's worksheets.

This helpful flow chart can help you manage the process: