Before workers compensation renewal, compare next year’s expected payroll and job duties with what your current policy describes. Keep that estimate separate from the actual payroll records your insurer may request for a final audit.
Renewal estimates and audit records do different jobs
- For renewal: estimate payroll for the coming policy term by work type. Explain planned hiring, seasonal changes, new services and work at new locations.
- For a final audit: provide the records requested for the completed policy period. These show actual payroll and operations.
For example, Texas Mutual’s final audit guidance explains that the review can result in an additional amount due, a refund or no adjustment. Follow your own insurer’s instructions and the policy period shown on the request.
Describe the work behind the payroll
A job title alone may not explain the duties. Note whether people work in the office, shop, field or at customer locations, and describe any new tasks. Include:
- Payroll changes by role, department or type of work.
- New employees, part-time or seasonal crews, leased workers and temporary help.
- Changes in owners or officers and questions about their policy status.
- New services, delivery duties, job-site work or work outside the usual area.
- Claims, return-to-work changes, safety improvements and unresolved audit questions.
Bring unfamiliar classifications or duties to the office for review rather than choosing a classification from the job title alone.
Keep the supporting records together
Depending on the insurer’s request, useful records may include payroll reports, applicable payroll tax reports, employee duty descriptions and records of payments to subcontractors. Texas Mutual lists examples in its premium audit guidance; another insurer may ask for a different combination.
For subcontractors, retain the work description, contracts, payment records and workers compensation certificates, where applicable. Identify the dates of the work and any missing documents. A certificate alone does not settle every question about a subcontractor’s treatment on your policy.
Raise changes before the renewal date
Send the dates and description of a current change promptly rather than holding it for renewal. For the wider policy discussion, use the business renewal checklist alongside our Workers Compensation Insurance guide. Keep a copy of what was requested and what the insurer confirms.