Glossary · Compliance
Workers' Compensation Premium Audit
The post-policy-period reconciliation in which a workers' comp carrier compares estimated payroll and class codes against actual exposure and adjusts premium.
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Entravia Editorial
Annual comp audits frequently produce premium-due or refund-due adjustments. Misclassified payroll (wrong class code) and uncategorized overtime are common audit findings that can be expensive in either direction.
Pay-as-you-go billing inside many PEO programs reduces audit volatility because comp premium is calculated on actual payroll each period.
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