Premium Audit

Log into the Business Center. From the policy drop-down, select View Policy Documents. Next, select the Audit Documents tab. Last, click the Audit Packet link from the document column. The audit packet contains your Premium Audit Summary.

Your policy was issued based upon estimated payroll. This audit allows both you and the insurer to be certain that coverage has been properly and fairly billed. Your policy contract and some state workers’ compensation laws require audits.

Cancellation audits are performed as soon as possible after workers’ compensation coverage is terminated. Yearly audits for employers currently insured are performed at the end of each policy period.

There are three types of audits: mail, virtual, and physical. 

Mail and virtual audits: If your account qualifies for a mail or virtual audit, we will request your records via U.S. Mail, and you will also have the option to email or fax us your records. Summit also offers the ability to upload records. If we have your email address on file, information regarding the record upload process will be sent to that email address.

Physical audit: If your account does not qualify for a mail or virtual audit, an auditor will schedule a physical audit with you.

The auditor will either call, email, or mail you a written notice.

If you’ve had a Summit premium audit in the past, the audit will be completed at the same location as prior audits, unless we are notified otherwise. If this is your first premium audit with Summit or if you would like us to contact your accountant’s office, please be sure to let the auditor know well in advance so the audit can be scheduled for a time and place that is convenient for you. Also, please let the auditor know right away if your payroll records are kept out of state. If you receive a mail or virtual audit notice, please comply by promptly sending the requested records to us.

We may request copies of certain documents during your company’s audit. Please have the following records and information available for the audit period:

• State Unemployment Quarterly Tax Reports and Federal 941 reports
• Federal reports, such as 1099 and 1096 forms (Unless this is a calendar year audit, please provide the report by audit period)
• Payroll summary showing gross wages by employee for the audit period
• To receive credit for overtime paid to employees, payroll must be listed in summary by employee job duties
• Cash disbursement journals/General Ledger/Profit and Loss
• Bank statements and copies of cancelled checks (if requested)
• Reports from an outside payroll service, if applicable

If any subcontractors were used by your company, your company will also need to provide the following:

• Subcontractor invoices, contracts, and amounts paid to each subcontractor for labor and materials
• Valid certificates of workers’ compensation insurance from subcontractors that correspond to the full period when the work was completed

 View additional information about subcontractors.

Our auditor must have the assistance of a person familiar with the records and duties of each employee.

Yes. We may cancel your policy for failure to provide audit records or for failure to cooperate with the auditor, in addition to imposing penalties and fines that may include:

• If your state allows it, a fine may be assessed if you fail to maintain and/or allow access to essential records.
• If the auditor is unable to complete an audit, we may arbitrarily determine payroll and charge up to a maximum of two to three times the most recent estimated amount of premium. The penalty is determined by your policy endorsement or state statute.

Based on the type of your dispute, please email the appropriate information and documentation, as listed below, to [email protected]. Be sure to include the policy number, your organization’s name, your name, and contact information. We will assign your request to a dispute representative, and an auditor will be in touch within two business days.

Type of dispute:

• Payroll: Send a copy of your payroll summary showing gross wages by employee for the audit period.
• Class code: Provide an explanation of why the class code(s) are incorrect, as well as a detailed description of your business operations.
• Officer/employee classification: Provide the names of disputed offers/employees along with their day-to-day detailed job duties.
• Overtime: Send a copy of your payroll summary showing gross wages and gross overtime listed separately by employee.
• Subcontractor: Provide workers’ compensation certificates of insurance, a copy of the exemption form or proof that the contractor meets the definition of an independent contractor.
• Officer exemption: Send a copy of the officer’s exemption or revocation.
• Wrap-up—common term for owner controlled insurance program (OCIP) or contractor controlled insurance program (CCIP): Send a copy of the project monthly payroll reports, project certificate of insurance, and a copy of the contract for the project.
• Other: If the reason for questioning the audit is not listed here, please email [email protected], explaining what items you wish to dispute and provide documentation to assist in our review.

Yes. Whether you were paying premiums based on estimates or you were part of our WebCAP (monthly payroll reporting and payment) program, all policies are required to comply with the audit which is outlined in the policy. This audit will be used to determine the final premium for the policy period.