Are you wondering how long your Workers’ Compensation policy lasts and how the premiums you are paying are calculated?
Workers’ Compensation policies last for a one-year period. At the end of the calendar year, the insurance carrier will conduct an audit of your payrolls to determine if jobs were properly classified and all payrolls paid has been reported. They will cross reference the employer 941 and state unemployment tax returns. Once the audit is completed, the employer receives a notice of either a refund or an additional premium due.
It is very important to have someone review the audit results as many times the auditor will misclassify jobs which can cause an increase in premiums. A knowledgeable HR professional can assist you with the audit review.
If you would like to learn more about this and other HR matters, reach out to a Human Resource Professional.