Workers Compensation Audit

I am a licensed contractor in California and today I received a paper mailed to me to mock society workers, saying that I must have an audit. I had 3 people working for me for a short period of time, which are all licensed, but not workers' compensation. how my hike up premiums?

When you started your accident policy that you advised the agent that your pay would be expected for the year ahead. The premium for your policy WC was calculated on the basis of the estimate.

At the end of the year the policy of the company audit your payroll records. If your actual payroll matched your estimated payroll of your premium is not affected. But if you've been paying more than you estimated, you will have an additional premium due. If your estimate is higher than the actual payroll, you have a return of premium.

It's always a good idea to try to estimate your payroll as accurately as possible so that your cost of the policy is a reflection of your insurance costs. Your general liability policy may also be subject to audit.

When taking a policy, you can guess, for the class code appropriate for your business, and estimate the payroll for the coming year.

Each year, the policy expires, the policy expires, is checked. They will come and watch your business and watch your books. They want to see tax returns.

At that time, they can do the following:

1. adjust your ranking or SIC code, or add or subtract class codes necessary for what you have done during the year
2. adjust the wage for each class that you paid
3. Add payroll for uninsured subcontractors that you had to work for you.

So there is no way of knowing how much your premium will increase. We do not know your class code, the code of the appropriate class, the rate or amount that you paid your employees not reported. But this increase is retroactive to last year, and these figures will be applied to policy renewal.

You do not add and subtract employees and subcontractors of your payroll that year goes on, and you add and subtreact. The way it works is used wholly or submarines uninsured, meanwhile, coverage automatically. , You will get charged for it and the rates are adjusted.

Hope that helps.

~ ~ If they were subcontractors, then you are not required to exercise over them a model worker. If you have paid from the payroll, then by law, there must be a model of workers' insurance while they were employed.

The audit is to review your payroll records, and then see if it matches what you told them during registration. If you answered employees would be?? payroll and you finally pay??? then your in trouble. They can make you come back and pay fines. They will also increase your rate depending on what your pay is really.

If everything remains in the amount of what you asked for was your payroll or less, it will be resolved.

Most contractors are all licensed by time. Then you do not have to carry ins toilet. Taxes on payroll. You can simply 1099 to the end of the year for the amount of money you paid when you have sub-contracted.

If you have no employees, then you can claim exempt and you do not have insurance at all toilets.

I hope this makes sense. ~

Now you know why companies hire you instead! they do not want to be disturbed!

I worked for the Legal and medical workers mock call and find yourself and try to get it! some documents and when the verification takes place yo will have proof that you are looking for info on her!

success

If you do things legally it should not affect your premiums. If these three people are allowed contractors and work as seamen on your work, I think you're O.