Your Final Audit

What is a final audit?

Your workers’ compensation policy was originally issued using estimated payrolls for the year. During the final audit process, we gather the actual payroll figures to reconcile or close out the policy for the period that has ended. You’ll receive an invoice named “final audit invoice” that will display the premium calculations based on your actual payroll figures.

This can be done via a secure website, mail, phone, or a visit from an auditor. At the end of your policy period, we’ll contact you to let you know how the payroll figures will be obtained.

Preparing for your final audit (payroll audit)

The following information will be requested from your auditor. Preparing in advance for the audit will make the appointment go smoothly.

  • Description of your operations
  • Ownership information
  • Employees names, titles and job duties
  • Gross Payroll Records-payroll journals/registers
    • For WC payroll information refer to the Payroll Reporting page
    • Construction classifications in CA will require review of time cards
    • Certified Payroll (OCIP/CCIP)
  • Waiver of subrogation information
    • Breakdown of payroll by class code is required for each named waiver
  • Subcontractor or casual labor information
    • Name of subcontractors
    • Certificate of insurance covering the same period as the policy period
    • If no certificates, auditor may request invoices, projects, contractor license number, etc.
  • Tax information
    • 940, 941, 1096, 1099, W-2, W-3
    • Income tax return
    • State unemployment insurance (SUI) quarterly returns (DE-9/DE9-c)
  • Sales information
    • Profit and loss statement
    • General ledger

What happens if I don’t allow the auditor in or return the requested documents?

Your final audit will be estimated. In most states, there are state statutes or WC bureau rules that allow the estimate to be up to 3 times the original EAP. In addition to the high estimate, your current coverage may be subject to cancellation. All of this will also affect your experience modification calculation.

What’s next?

After the final audit has been done at your office, you’ll receive a final audit invoice within 30 days. This invoice will reconcile what you’ve paid based on your estimates or your monthly reporting. If you have any questions, please feel free to call us to review the invoice or the audit information.

What to do if you disagree with your final audit invoice:

ICW Group strives for 100% accuracy on your audits and invoices. As you review your final audit invoice, please let us know right away if you find any discrepancies, or disagree with the findings.

How do I notify you of a discrepancy?

Please contact and provide as much detail as you can.

What information do I need to send you?

  • A brief description of what you are questioning. Let us know about any errors or discrepancies you have found.
  • If you think any of your employees have been misclassified, please provide the details. If it involves a group or department, include a description of the issue in your email. If it involves a few individual employees, please complete and return a Statement of Duties form.
  • If you think the payroll amounts are incorrect, we’ll need copies of the payroll records provided at the time of audit, or any additional records that you feel would help resolve the issue.

Do I still have to pay anything?

Once we receive your information, we’ll review the audit and billing. If necessary, we will place the billing in dispute while we investigate further and make any necessary corrections or adjustments. We’ll also compute any amounts that are still due based on the “undisputed” portion of your billing. Undisputed amounts will still be due in accordance with the original invoice.

What if I still disagree with your findings?

  • Our dispute resolution process is outlined in the policyholder notice attached to your workers’ comp policy.
  • You may send us a written complaint and request for action requesting that we reconsider a change in a classification assignment that results in an increased premium and/or requesting that we review the manner in which our rating system has been applied to your policy.

Have a general audit question?

Contact We’re here to help!