While we’ve seen a decline by some states in conducting onsite worker’s compensation inspections, probably given social distancing and more job sites having been suspended in some areas, employers’ private insurance carriers typically audit their premiums in the first quarter or so of the year.
How may this impact you? Worker’s compensation premiums are calculated based on the wages you pay your workers. There is a job classification code and a corresponding rate. Your monthly premiums are really more like estimates, and year-end, your carrier confirms if you have over or under paid based on an audit of your payroll.
Sometimes the carriers impute payments to subcontractors who don’t have proper exemptions or policies to the hiring contractor as employee wages. The result.... you may receive a notice for additional premium owed that can be large and in charge.
If this happens to you, we can potentially help contest that imputed premium and explore better practices to prevent this going forward. Just like in the criminal setting, contact us BEFORE you say anything over the phone or in writing in response to your insurance carrier. You can’t un-ring a bell once it’s already been rung.