There are a couple of ways that insurance companies will
bill workers' compensation insurance premiums. Since the
premium is based off of the insured's payroll, both ways
involve an audit to verify the payroll amounts. The most
common way to bill the premium is through using the estimated
payroll. The estimated annual premium is then paid upfront
or in installments throughout the year. At the end of the
policy year the insurance company will conduct an audit
to find out the actual payroll and adjustments will be made
to the premium. The other way to bill workers' compensation
premium is through monthly self reporting audits. More information
about both of these billing methods and their audtis can
be found below.
