Preparing for an Audit
At the end of each coverage year, a payroll audit is completed to ensure the correct amount of premium is collected. This is measured by the amount of payroll. 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.
Preparing for audit, please gather:
- Records showing payroll by individual. Payroll records must clearly show actual wages, NOT budgeted wages or percentage splits. IMWCA allows split code classifications (except in codes 8810, 8742 & 8227) if an employee works in multiple departments.
- Payment for active military duty, Third Party Sick Pay and Severance Pay: Active military payments to employees, above and beyond accrued vacation pay, are excludable for workers compensation. This pay needs to be available for the auditors.
- Please notify the secondary road department of the upcoming audit. The auditor will need the DOT wage breakdowns for all secondary road departments (county members only).
- Federal 941 Reports and /or Iowa Unemployment Reports.
- List of all subcontractors & contract labor paid during this policy period. Have available certificates of workers compensation insurance on each, as well as the contract agreements.
- Total number of employees employed during the policy period, categorized as full-time, part-time and seasonal. Also, list the total number or statutory volunteers (firefighters, reserve peace officers, EMTs, EMT trainees and certified first aid volunteers).
- Individual listings of all volunteer firefighters. Volunteer EMTs, EMT trainees and certified first aid volunteers with the amount, if any, paid to each. Listings must include all individuals who served in those capacities during the audit period whether or not they are still a employee of the organization.
- A list of all reserve peace officers who served during the audit period. This information should include the number of hours spent working, training and attending meetings.
- A listing of all boards and commissions and remuneration amounts, if any. Please list the board members names for each board and/or commission. (Coverage is included for boards and commissions directly governed by the city or county.)
- Provide a copy of all non-statutory volunteer applications for the recently expired policy period.
If you have questions about the information requested, please contact Darryl Becker at Information Providers Inc 800-622-5687 ext. 154 or Andrew Justice at IMWCA (515) 974-5341.
Remuneration/How to Calculate Payroll
Remuneration, it’s not a word you run across every day! But it has an enormous effect on the pricing of a workers’ compensation insurance policy. Moreover, payroll is merely a part of the overall category of remuneration. Learn about remuneration and the part it plays in your premium calculation.
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