Insurance Success Tip #8 - Check Your Work Comp Payrolls
>> Thursday, August 06, 2009
The payrolls declared on your workers' compensation policy determines your estimated premium. At the end of the policy year you are asked to report your actual payroll. The audit results in an adjustment to and the final settle-up of premium. Review your payrolls to avoid a large audit additional premium or a large return premium. Think of it like your income tax - you pay estimated taxes and settle at the end of the year. You don't want a big bill or a big return.
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Scott lives in Maine and runs a successful consulting firm. He has worked with over 1,500 businesses in his 30 year career.
2 Comments:
If you know that your payrolls is running a lot lower (say 40%) during the current year you can ask the broker/insurance company to reduce the current year premium?
In most cases, yes. You will have to prove that payrolls are down - easy to do with 941s or payroll records.
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