FWCJUA’s Payroll Audit Procedures
The goal of the FWCJUA is to complete timely and accurate audits in order to assess and collect premium that represents the proper risk exposure – no more and no less. To ensure accuracy, the Employer should use reasonable payroll estimates on the policy to avoid possible substantial additional premiums at the time the audit is prepared.
Quarterly Payroll Audit Procedures:
Each Employer will be required to complete and return the Quarterly Payroll Reporting Form along with their corresponding UCT-6 and Employer's Affidavit. This information is due back to the Service Provider no later than 45 days following the end of each calendar quarter (i.e. May 15th, August 15th, November 15th and February 15th). Failure to remit this information in a timely manner may result in the cancellation of the policy. For Detailed instructions for properly completing the Quarterly Payroll Reporting Form and Employer's Affidavit, please follow this link: Completing Quarterly Payroll Audit and Employer's Affidavit.
Final Payroll Audit Procedures:
Each workers compensation policy is subject to a premium audit at the end of the policy term. An audit may take the form of a physical audit or a mail audit based on the size of the policy and/or the nature of the business operations. Once the final audit is completed, the Service Provider will bill for any adjustments or return any unearned premium to the Employer. Note: Failure to return a mail audit or refusal to cooperate in completing a physical audit may result in the cancellation of the policy AND billed up to a maximum of 3 times the most recent estimated annual premium in accordance with section 440.381(8), Florida Statutes, for purposes of determining the final premium.
If the auditor is refused physical entry or during the course of the physical audit the auditor is denied access to essential records, a $500 penalty may be imposed on the Insured in accordance with section 440.381(5), Florida Statutes. The $500 penalty may be imposed only if the Service Provider has incurred actual travel expenses and the Insured was made aware of the potential penalty in writing when access was denied. Denial of access to records by the Insured's Agency or Designated Producer or any other representative of the Insured shall be considered the same as denial by the Insured.
For more information on the payroll audit process or for a status of your audit, please contact our Service Provider, Travelers, at 1-800-247-7218. |