Payroll Reporting & Premium Adjustments

Premiums for workers’ compensation insurance are based on variable payroll and related items, so it’s seldom possible to determine the exact premium in advance. We calculate the premium using payroll estimates provided when the policy is issued.  

Adjusting Policy Premiums

At various intervals during the policy term, we may request payroll information to update the estimate with actual payrolls. When your policy expires, we’ll require you to provide us with the final payroll information for the expired policy term. 

To accurately adjust policy premiums, our Premium Audit Department uses a combination of physical, telephone, and voluntary audits to obtain your payroll information. Physical audits are performed by an experienced technical field auditor at your location. In addition to auditing your records at policy expiration, our auditors will:

  • Perform service audits upon request to help set up proper payroll records for workers’ compensation insurance; and  
  • Provide an operations review for purposes of classification assignment.

Our auditors have many years of experience in determining classifications and keep abreast of the latest changes in the rules and regulations under the WCIRB and NCCI. As a result, they can provide assistance and guidance to you on technical issues. We’ll also help you with classification disputes involving the various rating bureaus.

Payroll Reporting Process

We offer you the flexibility of payroll reporting by mail, fax, and online using ePayroll when you register for online access.

ePayroll is an easy-to-use online tool for policyholders who have interim payroll reporting and want to submit payroll information to us electronically. Here are some of the benefits:

  • Enables you to inform us about any changes in general account data, ownership information, and classification
  • Allows sufficient time to submit the payroll information requested
  • Gives adequate written notice to you and your broker before sending cancellation notices in cases of delinquent reports
  • Incorporates a flexible time extension when there is a valid reason for delay
  • Eliminates mailing delays and reduces your paperwork requirements

When the payroll information has been completed for the specified reporting period, it’s stored in the Audit List for future review. The Audit List contains a historical record of all previously filed audit reports for the specified policy. Once you have successfully completed your payroll report, the option to make an electronic payment can be submitted for the balance.

If you choose to report payroll by mail or fax, we’ll send you a form to complete and return. If you have lost your form, please contact the Audit department at 415-981-3200 or 800-662-1485. A payroll report form will be faxed or emailed to the insured/broker. The form will have the corresponding bar code for the report period and the correct fax information.