Payroll audit
A review of actual payroll, operations, worker status, and classifications used to determine final workers' compensation premium after estimated exposure is reconciled.
Workers' compensation premium is commonly based on estimated exposure at the start of a policy and reconciled later. During an audit, the insurer may review payroll, employee counts, business operations, subcontractor records, and classification codes.
California's State Compensation Insurance Fund explains that its audits can verify business type, payroll, employee count, and classifications and can produce an additional bill or refund. Audit treatment of owners and uninsured subcontractors depends on the policy and jurisdiction.
Where this definition comes from
Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.
More terms
- Additional insured
- Agricultural/farm labor exclusion
- Assigned risk pool / residual market
- Casual employment
- CE-200 (New York)
- Certificate holder
- Certificate of election
- Certificate of insurance (COI)
- Civil penalty (uninsured employer)
- Class code
- Competitive state fund
- Construction vs non-construction classification