Workers’ Compensation Billing
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.
Annual Premium Audits
Workers’ Compensation Insurance was developed during the industrial revolution in an effort to protect workers that were injured on the job. It dates back to…
Monthly Self-Reporting Audits
An alternative to