The final workers compensation premium as stated and presented to you after the audit process is completed. It represents the final cost of your workers compensation insurance program. Remember that workers compensation policies are set up with a deposit premium, in other words, a premium established on a best guess as to what your remuneration (payroll) at the end of the policy period will have been. Once the policy period has ended and the audit process completed the insurance company will send you an adjustment either an additional premium due or a credit based on how your actual remuneration (payroll) ended up.
Remember itís not until the workers compensation audit process is completed that the final cost is truly determined. Each employer undergoes their own audit. When an individual employer has a non complicated audit and the process flows easily they may reasonably expect sound outcome. However, even those workers comp audits that should be uncomplicated may have mistakes or errors made.
After the final audit is presented to the employer it is of the utmost importance that they have their audit reviewed for accuracy. It is an unfortunate fact that mistakes are made in over 50% of the audits completed. So as an employer you must review your audits. Sometimes these can be quite complicated and without knowing the rules and their applications, an employer will feel lost and unrepresented. If at any time an employer feels they have been subjected to an adverse audit they need to seek professional assistance in reviewing their workers comp audit.