<div class='html-Content' xmlns="https://www.w3.org/1999/xhtml">
<div class='head-Content'>
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8">
<title>Why are Premium Audits Required</title>
<meta name="keywords" content="Why are Premium Audits Required">
<meta name="description" content="Why are Premium Audits Required">
<link rel="stylesheet" type="text/css" href="/stylesheets/mobile_styles.css">
<style type="text/css">
<!--
@import url("/stylesheets/statefund_styles.css");
-->
</style>
<style type="text/css" media="handheld, only screen and (max-device-width: 480px)">
<!--
@import url("/stylesheets/mobile_styles.css");
-->
</style>
<link href="/stylesheets/statefund_styles.css" rel="stylesheet" type="text/css" media="screen and (min-width: 481px)">
</div>
<div class='body-Content' id="">
<div class="topheader"><img src="/images/state_fund_logo.gif" alt="state fund logo" border="0" align="left">
<div class="offscreen"><img src="/images/offscreen_transparency.gif" alt="" width="250" height="20" align="center"></div>
<ul id="accessibility" class="offscreen">
<li><a href="#skipnavigation" accesskey="0">Skip past navigation</a></li>
<li><a href="#footer" accesskey="4">Skip to table of contents</a></li>
</ul>
<div class="offscreen"><img src="/images/offscreen_transparency.gif" alt="" width="250" height="20" align="center"></div>
<div class="topheaderRight">
<div class="topnav">
<div class="topnavRight"><a href="/index.asp" accesskey="5">Home</a> | <a href="/contact/ContactUs.asp" tabindex="1">Contact us</a></div>
<div class="topnavLeft"><a href="/employers/Index.asp" name="Employer">EMPLOYERS</a> | <a href="/broker/Index.asp" name="Broker">BROKERS</a> | <a href="/provider/Index.asp" name="Medical Provider">MEDICAL PROVIDERS</a> | <a href="/employees/Index.asp" name="Employee">EMPLOYEES</a> | <a href="/statecontracts/Index.asp" name="State Contracts">STATE AGENCIES</a></div>
</div>
<div class="topTitle">Customer Support</div>
<div class="topMissionCustomer">888-STATEFUND (888-782-8338)</div>
</div><div class="clear"></div>
<br><br><br><br>
<br><br>
</div>
<div id="mainNav2">
<div id="mainNav3">
<div class="offscreen"><img src="/images/offscreen_search.gif" alt="" width="250" height="20" align="left"><br>
<br>
</div><div class="search">
<form name="search" action="https://search.scif.com/StateFundCAsearch.cgi" method="get"><input value="Search" name="query"></form>
</div><div class="offscreen"><img src="/images/offscreen_transparency.gif" alt="" width="250" height="20" align="center"><br>
</div><ul>
<li><a href='/CustomerSupport/Index.asp' name='Customer Support Home'>Customer Support Home</a></li>
</ul>
</div>
</div>
<div class="mainArea">
<div class="subright">
</div>
<div class="subleft">
<div id="subNav">
<ul>
<li><a href='/CustomerSupport/ObtainPolicy.asp'>Obtaining a Policy</a></li><li><a href='/CustomerSupport/PolicyUpdates.asp'>Policy Updates & Changes</a></li><li><a href='/CustomerSupport/Certs.asp'>Certificates of Insurance</a></li><li><a href='/CustomerSupport/PayrollReportingChoices.asp'>Payroll Reporting Choices</a></li><ul><li><a href='/CustomerSupport/Payroll.asp' title=''>» Payroll Reporting FAQs</a></li><li><a href='/CustomerSupport/PayrollStipBilling.asp' title=''>» Policies on Stipulated Billing</a></li></ul><li><a href='/CustomerSupport/Billing.asp'>How to Read Your Invoices</a></li><li><a href='/sfo/Register.asp '>Register for State Fund Online</a></li><ul><li><a href='/employers/how-to-register-state-fund-online.asp' title=''>» How to Register</a></li><li><a href='/employers/how-to-add-users-state-fund-online.asp' title=''>» How to Add Users</a><a href='/employers/how-to-file-a-claim.asp' title=''>» How to File a Claim</a></li><li><a href='/employers/how-to-manage-claim-state-fund-online.asp' title=''>» How to Manage Your Claim</a></li></ul><li><a href='/CustomerSupport/ElectronicPremiumPayment.asp'>Electronic Premium Payment</a></li><ul><li><a href='/pdf/sfo/e13456.pdf' title=''>» ePayroll and ePayment User Guide</a></li></ul><li id='subNavHightlight'><a href='/CustomerSupport/Audit.asp'>Premium Audit</a><ul><li><a href='/CustomerSupport/srt.asp' title=''>» Forms and Records Submission</a></li></ul></li><li><a href='/CustomerSupport/Claims.asp'>Claims</a></li><li><a href='/CustomerSupport/RenewPolicy.asp'>Renewing Your Policy</a></li><li><a href='/CustomerSupport/Cancellation.asp'>Cancellation</a></li>
</ul>
</div>
<div class="sidesubsubnav">
<div class="subheadr">Quick Links</div>
<ul>
<li><a href="/contact/ContactUs.asp">General Contact Information</a></li>
<li><a href="https://www.surveymonkey.com/s/customersupportthankyou" target="_blank">Tell Us What You Think</a></li>
</ul>
</div>
</div>
<div class="submiddle">
<p class="subright"> </p>
<sp>
<h1>Why are Premium Audits Required?</h1>
<p>California insurance industry regulations require us to perform regular payroll reviews to make sure you are charged the correct amount of premium for the policy period and to verify your business operations.</p>
<p> Your annual premium is based on the following:</p>
<ul>
<li>If you pay premium in monthly or quarterly stipulated installments, then the premium you pay will be based on the annual payroll estimates that you or your broker provide to State Fund.</li>
<li>If you pay your premium based on actual payroll reporting on a monthly, quarterly or annual basis, then your annual premium is based on this actual payroll reporting.</li>
</ul>
<p>After the policy year is completed, our auditors will review your payroll records and verify your actual payroll and business operations to ensure that the final premium is accurate. The audit may result in a return of overpaid premium or it may generate an invoice for additional premium.</p>
<p> The auditor will also:</p>
<ul>
<li>Verify that the officer or owner information on the policy is current and accurate. </li>
<li>Verify that all locations from which you conduct business are reflected on the policy</li>
<li>Verify the job duties and payroll of employees who were injured during the policy year.</li>
</ul>
<h2>REFERENCE MATERIAL</h2>
<p> We’ve provided the following to assist you and your broker (when applicable) in preparing for the audit. Your auditor is also available to answer questions and provide guidance in preparing for the audit.</p>
<p> All Workers’ Compensation Insurance carriers in the State of California operate under the regulations set by the Workers’ Compensation Insurance Rating Bureau (WCIRB). </p>
<p> This short video will explain the audit process and may answer any additional questions you may have.</p>
<iframe width="560" height="315" src="https://www.youtube.com/embed/q21feblvJmw" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen;"=""></iframe>
<p> </p>
<p>The <a href="/pdf/PremiumAuditGuide.pdf">Premium Audit Guide</a><a href="https://content.statefundca.com/pdf/PremiumAuditGuide.pdf"></a> will provide answers to some of the frequently asked questions we receive. It will also provide a list of some of the more common records that our auditor will need to complete the audit.</p>
<p><a href="/pdf/PremiumAuditGuideSpanish.pdf" target="_blank">Para una versión en español de la guía para una auditoría de prima, haga clic aquí.</a></p>
<p>Would you like to know more? We have a <a href="/safety/seminars/PremiumAuditProc051022.asp">pre-recorded webinar</a> that takes a deeper dive into the audit process and what you can do to make it as smooth as possible.</p>
<p>The <a href="https://www.wcirb.com/learning-center">WCIRB Learning Center</a> website discusses topics that may pertain to your operations. </p>
<p> This short video covers important details specific to the construction industry, and
explains steps to prepare for an audit.</p>
<iframe width="560" height="315" src="https://www.youtube.com/embed/H1p61n88Dis" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe>
<p> </p>
<p>The <a href="/pdf/PremiumAuditGuideCons.pdf">Premium Audit Guide-Construction Operations</a> is tailored to provide information to our client base that specializes in Construction Operations. </p>
<p><a href="/pdf/PremiumAuditGuideConsSpanish.pdf" target="_blank">Para una version en español de la guía de auditoria de prima para construcción, haga clic aquí</a>.</p>
</sp>
</div>
<div style="clear:both"></div>
</div>
<a name="footer"></a>
<div class="footerArea">
<div class="footerbg">
<ul>
<li>
<div class="footerSpacer"></div>
<a href="/broker/Index.asp">Brokers</a>
<br>
<a href="/employers/Index.asp">Employers</a>
<br>
<a href="/employees/Index.asp">Employees</a>
<br>
<a href="/fraud/Fraud.asp">Fraud</a>
<br>
<br>
</li>
<li>
<div class="footerSpacer"></div>
<a href="/provider/Index.asp">Medical Providers</a>
<br>
<a href="/statecontracts/Index.asp">State Agencies</a>
<br>
<a href="/policy/ObtainAPolicy.asp">Obtain a Policy</a>
<br>
<a href="/about/VendorGuide.asp">Vendor Guide</a>
<br>
<br>
</li>
<li>
<div class="footerSpacer"></div>
<a href="/claims/ClaimsSvcs.asp">Claims Services</a>
<br>
<a href="/safety/SafetyAndSeminars.asp">Safety & Seminars</a>
<br>
<a href="/forms/Forms.asp">Forms</a>
<br>
<a href="/about/Community.asp">Community</a>
<br>
<br>
</li>
<li>
<div class="footerSpacer"></div>
<a href="/about/About.asp">About Us</a>
<br>
<a href="/about/history/index.html">History</a>
<br>
<a href="/contact/ContactUs.asp">Contact Us</a>
<br>
<a href="/CustomerSupport/Index.asp">Customer Support</a>
<br>
<br>
</li>
</ul>
<div style="clear:left"></div>
</div>
</div>
<div class="footerArea" align="center">Copyright © 2000-2023 State Compensation Insurance Fund<br>
<a href="/about/TermsOfUse.asp">Website Terms of Use</a>, <a href="/about/PrivacyPolicy.asp">Website Privacy Policy</a> and <a href="/about/SharingDisclosure.asp" target="_blank">Information Sharing Disclosure</a></div>
</div>
</div>
