Illinois Workers Compensation Premium Audit

Found another simple mistake yesterday on a worker’s compensation premium audit. An owner/officers payroll was slid into the governing work comp class. This is a janitorial service client of mine in the city of Chicago and the error was simple to find. It was simple to find because we completed a premium audit package for the insurance auditor. We had a summary to refer back to once the final audit was completed by the insurance company.

BUILD AN OVERCHARGE-PROOF WORKERS COMPENSATION PREMIUM AUDIT PACKAGE

Utilize a spreadsheet
From your Illinois Unemployment Quarterly Reports – total each employee’s earnings for the year.
Slide each employee into a job duties column (make sure you’re specific as to the duties which correspond to the appropriate work comp classification).
Adjust for Excluded Payroll (overtime, tips, certain allowances, contributions to benefit plans, etc.)
Have your Certificates of Insurance ready for any subcontractors
Cap owners pay to the appropriate number

There's a little more to the process but you get the idea...