workers comp premium audit
What will the audit charge you for your subs?
Sub spend with no certificate on file, priced at your class code before the audit.
Not built yet. For contractors who pay 1099 subs. No use to you if every one of them already carries a certificate.
| Paid to | Sub spend | Certificate |
|---|---|---|
| Vega Drywall | $157,900 | none |
| Delgado Concrete | $96,400 | none |
| Maldonado Framing | $74,200 | none |
| Cortez Cleaning | $41,300 | current |
12 more subs have certificates on file
Additional premium at audit$31,400 to $46,700
What the audit can bill you
Sample ledger. $328,500 with nothing on file, priced at class code 5645 and a 1.00 mod, both assumed.
The bill arrives after the year is over.
My dad runs a small business in CA and was recently hit with a random audit by his own insurance company claiming he owed over $90k in backpay for not providing his 1099 subcontractors with workers comp insurance… At first we thought this might be a scam because it's just so crazy but he called and talked to his insurance company and it's not a scam.
r/smallbusiness, "Workers Comp Audit, $90k backpay…???"
I own a cleaning company in North Carolina and my workers comp audit just came back with a $7,000 bill. This is a small company and I do not have 7k to hand over. I already pay them a very high premium monthly.
r/smallbusiness, "Can I challenge workers comp audit?"
For anyone with a riskier line of work, how do you deal with the worker's comp audit? I feel so nervous about it, is it just me?
r/smallbusiness, "How does the workers comp audit make you feel?"
None of those threads ends with a number.
How the number is built
- 01
Your ledger
We read who you paid and how much.
The file you choose.
- 02
Certificates on file
Spend we cannot match to a certificate counts as uncovered.
The certificates you already hold.
- 03
Class-code arithmetic
Uncovered spend priced at your class code, with every assumption printed beside the range.
State rate filings.
Where the range comes from
The assumptions print
Class code and experience mod are guesses until you correct them. Both ends move when you do.
$328,500Sample
sub spend without a valid certificate, in the ledger above
3 of 4Sample
sample subs shown without a certificate
What $149 buys
Sample
- 47 certificates current, collected and dated
- 3 expiring inside 30 days, new certificates requested
- 0 subcontractors with no certificate on file
The packet you hand the auditor, with the worksheet already answered.
Before you run it
- My subs are exempt.
- State exemption and your carrier’s rule are two different documents. One owner’s premium went from $11k to $180k on that reading: "They are exempted from their state for requiring WC, however, that is not good enough for my WC insurance."
- My broker reviews the audit.
- Keep the broker. His commission rides on the premium, so bring your own arithmetic to the meeting.
- Free certificate trackers already exist.
- They answer whether a certificate is current, and they are free because the companies behind them sell insurance. Pricing your audit would cost them policies.
- The range is wide.
- One number would read as a measurement. The width is your mod and your state’s rules, neither of which we can see yet.
Price the audit before the auditor does.
$149 a month if it ships
$149 a month, against a sample bill that starts at $31,400.