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A Worker’s Compensation Audit, Simplified

Worker's Compensation Audit Process

Worker’s compensation premium audits are never fun, but we are hoping this guide makes the process much easier for you and your company.  A premium audit, also known as a payroll audit, is performed every year to determine your actual payroll amount, which is the basis of your premium.  Your worker’s compensation premium is based on your estimated premium for the year.  The actual payroll amount is almost always different than the estimated payroll amount.  Premium audits are performed at the end of your worker’s compensation policy. 

There are two types of audits, a field audit, and a remote audit.  A field audit is a review of all documents on-site, a possible inspection of the building, and a review of employees performing their job duties.  This is done by your insurance carrier or a designated premium audit vendor.  A remote audit is usually performed via telephone, email, fax, or mail.  Different documents, such as payroll and quarterly tax returns, will be requested. 

In preparing for your audit to be performed, a few steps are important in easing the process.  The first step in preparing for your audit is dedicating a primary contact person in your company.  This should be someone familiar with all departments in your company who can access your payroll records.  A great contact person would be your CFO, HR Director, or Operations Manager.  Once they have been selected, the primary contact should familiarize themselves with the class codes, premium rates, and payrolls used to calculate your premium in the policy as it is written.  Also, review all information the auditor has access to, such as your website.  The primary contact should have access to the documents found in the below checklist. 

It’s important to learn how the audit process works and what you may need in order to make sure it is done correctly.   


Interested in learning more? Please email us at or call 773-945-6000 

Worthy Insurance is a niche broker with a focus on providing insurance placement and risk management services to the Healthcare, Manufacturing, Social Service, and Main Street business communities. Here at Worthy Insurance, we love to provide you with exciting and fun articles to learn more about insurance and how it impacts your life. Visit our other blogs to find more information. 

While Worthy does offer a wide variety of insurance coverages, our main coverages include: property coverage, worker’s compensation insurance, general liability, professional liability, and cybersecurity coverage. To find out the best coverages for your company, use the contact form below so you can be at ease knowing your company is covered. 



Worker’s Compensation