Your annual premium audit
SFM conducts annual premium audits of all policyholders. This assesses each employer's insured risk and secures accurate, updated payroll data.
The premium your organization is billed at the beginning of a policy year is actually an estimate. This estimate is calculated using two things: your organization's job classifications and payroll.
Classifications are determined by the kinds of jobs your employees perform and reflect different levels of risk exposure.
To prepare for a premium audit
1. Gather your records including:
- General ledger, financial statements.
- Payroll records, time books, state unemployment returns, FICA returns, individual earnings record.
- Cash receipts, sales journal.
- Cash disbursements journal.
- Certificates of insurance.
- 1099s reported in the most recent 12 months.
- Quarterly state unemployment forms.
2. Make sure your information is correct.
3. Be available to answer questions. |
Your organization's payroll can change throughout the year if your workforce grows or shrinks, employees work overtime, or your organization expands or diversifies.
So, at the end of the policy year,
an audit of the previous 12 months' payroll and job classifications is conducted. The billed premium is adjusted to reflect any changes.
Within 60 days after a policy expires, an SFM auditor will visit
or call the policyholder to review the payroll records in order to secure the actual payroll recorded for the policy year just ended.
SFM auditors can also assist policyholders with recordkeeping and job classifications, and will help estimate payroll for renewal as a special service to policyholders.
For more information about a premium audit, order the "Premium audit" CompTalk
from SFM's online "Resource catalog" or call (952) 838-4325 or
(800) 937-1181 ext. 4325.
|
