A payroll audit is completed at the end of each coverage year to ensure the correct amount of premium is collected.
Preparing for an Audit
Audits will be performed in July and August by IMWCA’s contracted firm, Information Providers, Inc. (IPI). IPI works with IMWCA to conduct the workers’ compensation premium audits on an annual basis.
How to Calculate Payroll
Payroll is only a part of remuneration. Many other items are covered under remuneration, some of which are not what is normally considered compensation. Learn what else may be part of your calculation.
The National Council on Compensation Insurance (NCCI) provides class codes and rates to 38 states, including Iowa. NCCI reviews and updates the loss data collected each year and makes recommendations on class code and rate changes to the State of Iowa Insurance Commissioner. Once approved, IMWCA applies those class codes and rates effective the following January 1.
Each employee’s work may fall into one or more classification (class) codes, and the rate charged for each code is based on the past loss experience for that type of work. The class codes and rates IMWCA uses are developed, maintained, and updated by the National Council on Compensation Insurance (NCCI) annually.