Received an audit request?
Your insurance carrier has asked DD Associates to complete the premium audit on your policy. Here is what that means and how to get it done quickly.
What is a premium audit?
Workers' compensation and general liability premiums are first set from estimates, such as your expected payroll or sales. After the policy period ends (or the policy is cancelled), the carrier checks the actual figures so your final premium is based on what really happened. Every policyholder goes through this; it does not mean anything is wrong.
How it works
- We contact you by phone or email with a list of the records needed for your audit period.
- You send the records, or have your bookkeeper, accountant or payroll company send them.
- We may ask a few questions about your business: what you do, who works for you and whether you use subcontractors.
- The audit is completed and sent to your insurance carrier, which issues any final bill or refund.
Records usually needed
Your request will list exactly what applies to you. Most audits use some of these:
- Federal 941 quarterly tax returns for the audit period
- A payroll summary by employee for the audit period, showing each person's job title or duties
- State unemployment reports (for example, Florida RT-6)
- A list of subcontractors or 1099 vendors you paid, with amounts, and a certificate of insurance for each one
- For general liability policies: sales or receipts for the period, such as a profit and loss statement
Using a payroll company? Ask for these reports
| Payroll service | Report to send |
|---|---|
| ADP Run | Payroll Summary (Excel) and Payroll Details for the audit period |
| ADP Workforce Now | Payroll History (Excel) |
| Paychex | Employee Earnings Record |
| QuickBooks Online | Payroll Summary by Employee |
| QuickBooks Desktop | Payroll Summary |
How long does it take?
Once all records are in, most audits are completed quickly. The fastest way to finish is to send everything on the list at once. If records are not received, the carrier may estimate your payroll, which can increase your premium.
Questions?
Reply to the email you received about your audit, or call the number in that email. Your records are kept confidential and used only for your audit.