|
|
· Workers compensation premiums are paid based on actual payroll paid out…
When you purchase your worker's compensation policy, you pay the insurance company an estimated premium, and at the expiration of your policy period you are audited by your insurance carrier and at that time you are billed the difference between the estimated premium that you paid and what your actual premium should have been based on your payroll.· Common Avoidable Costly Error Business Owner's Make…
For those of you that employ Subcontractors you will need to have proof that these subcontractors have worker's compensation insurance when you are audited by your insurance carrier or you will be billed by your insurance carrier for the worker's compensation for that subcontractor, based on the total amount you paid the subcontractor! This can be a substantial amount. In some industries worker's compensation premiums can be 25% and higher of the total payroll paid.So don't get yourself a shock, be sure to put together an accurate system to monitor and file the worker's compensation information so that you are ready for your audit.