If you have questions concerning the audit process, a previously billed audit or an upcoming audit you can contact the Audit Department by mail, phone, fax or email at:
LAUNDRY OWNERS MUTUAL
701 RODI ROAD – SUITE 100
PITTSBURGH, PA 15235
800-590-4404 (long distance)
There is no grace period on additional premium due from a final audit. The due date of the additional premium owed is confirmed on the Final Audit billing statement.
If you disagree with the final audit, the payroll figures used or the classifications assigned to an employee, you have the right to dispute the audit.
The dispute must be made in writing and be signed and dated by an owner or Officer of the Company. The written dispute must be received in our office by no later than 10 business days from the date of the Final Audit billing statement. Disputes received after 10 business days may not be considered.
Introduction to the Payroll Audit
The premium charged for a workers’ compensation insurance policy is based upon estimated payrolls. As such it is necessary to confirm what the actual payroll figures were during the policy term in question and this is accomplished through a payroll audit.
A payroll audit is the review of various company financial records to assist in determining what the actual gross payrolls were for a specific period of time. The determined gross payroll is then reported to the carrier and it is used to calculate the final price for the policy period in question.
Audits are performed after the expiration or cancellation of a workers compensation policy, or possibly at specified intervals. A payroll auditor will contact you, by phone or mail, to schedule the payroll audit appointment. Occasionally we may be able to conduct the audit by mail or by telephone rather than by an on-site appointment.
If the estimated payrolls used to initially calculate your premium is less than what the actual audited payroll figures were, you will be billed for an additional premium. Conversely if the estimated payrolls are higher than what the actual audited payroll figures are, then you will be due a return premium. Depending upon the status of your current policy this return premium will be credited to your current policy or paid by a return premium check.
The auditor will be reviewing records that contain information necessary to verify the exposures, such as:
- Payroll Ledger or Journal
- Cash Disbursement Journal
- Business Check Register
- Financial Statements
- State Unemployment Report (UC-2)
- Federal Reports
- Federal 1099
- Job Cost Records & Contracts
- Certificates of Insurance
So that the auditor can better understand that nature of your business, the auditor will inquire about your overall operations, employee job functions, company and ownership structure. The auditor may also request a tour of your facility to ensure the proper classification of employees.
Please be assured that every effort will be made to minimize the time involved by you and your employees.