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ANNUAL RENEWAL WORKSHEET
AUDIT ADVICE (tips, over-time pay, holiday pay, etc.)
ESTIMATED BILL (EB)
PAYROLL AUDITS
ANNUAL RENEWAL WORKSHEET
All participants have a common renewal date of January 1st, regardless of their entry effective date.
In mid-October policyholders will receive an ANNUAL RENEWAL WORKSHEET allowing them to update policy information before their Estimated Bill (EB) is generated for the upcoming year.
The insured must verify the following information on the renewal worksheet to ensure complete accuracy:
| Name of Business |
Type of Business |
| Contact |
Type of Entity |
| Mailing Address |
Tax ID# |
| Physical Address |
Last Audited Payroll |
| Phone |
Inclusions/Exclusions |
| Fax |
Estimated Payroll |
AUDIT ADVICE
Tips and gratuities are EXCLUDED from the workers' compensation premium
calculation. Make sure when your client is reporting payroll, that tips and gratuities are
identified but not included in the calculations.
Encourage the policyholder to identify overtime pay per employee and to maintain accurate records. Premium is due only on the "straight time" portion of overtime - meaning if an employee is paid "time and a half," the half portion of the payroll is not applicable to workers' comp premium calculation.
North Carolina law requires that the employers calculation of worker's comp premium
INCLUDE: commissions and bonuses, holiday, vacation, sick pay, and cafeteria plans.
ESTIMATED BILL (EB)
In mid-December policyholders will receive an Estimated Bill (EB) for the upcoming year which will reflect changes taken from the renewal worksheet. For those on the monthly payment plan who realized a premium increase, the EB will include an increase to the 25% deposit as well. If the policyholder has a bond in lieu of the 25% deposit, the bond premium will appear on the EB as well as the annual Expense Constant.
PAYROLL AUDITS
Annual payroll audits, as required by NCCI, are performed by an outside auditing company. Since policies are issued based on estimated payroll, any temporary labor and amounts paid to subcontractors without Certificates of Insurance may result in adjustments to the final premium. Some insureds will receive a telephone audit, while others will experience a physical audit. We require:
Employer's Quarterly Tax and
Wage Reports, Form NCUI 101.
If subcontractors have been employed, Certificates of Insurance must be included or the policyholder will be responsible for the payroll. Final audit bills will reflect any discrepancies. We do not honor waivers of subrogation. |
