Your annual premium audit
SFM conducts annual premium audits of all policyholders to assess each employer's insured risk and secure 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 organizations' job classifications and payroll.
To prepare for a premium audit
1. Gather your records including: general ledger, payroll records, check registers, cash receipts, cash disbursements,
certificates of insurance and 1099s.
2. Make sure your information is correct.
3. Be available to answer questions. |
Classifications are determined by the kinds of jobs your employees perform and reflect different levels of risk exposure.
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 resources catalog at www.sfmic.com or call (952) 838-4325 or
(800) 937-1181 ext. 4325.
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