Workers’ Compensation Payroll Audit: Frequently Asked Questions
Below is a list of frequently asked questions regarding Church Mutual's payroll audit process. If you have any questions not addressed below, please contact our Premium Audit Unit by email at email@example.com or by calling (800) 554-2642, select Option 4, Extension 4000.
What is my audit or policy period?
Your policy period is the time frame workers' compensation coverage was provided. Your policy period can be found in the top right corner of the payroll audit request.
What is the reason for the audit?
Your workers' compensation coverage was based on estimated payroll. When your policy expires, we send out the audit form to gather the actual payroll for the coverage period. Each state bureau requires we obtain payroll audit information at the end of the policy term. This is also a condition of your workers' compensation policy.
Why do I report payrolls for the prior year?
Your workers' compensation coverage is based on estimated payrolls. Once your policy expires, we send out the audit form to gather the actual salaries you paid your employees and compare the two.
Who do I list on the audit form?
List anyone who receives a W-2 or 1099 from you. This includes past employees if they received a W-2 form and past contractors if they received a 1099 form for the policy period.
Do I include people that were paid less than $600 during the audit period?
Yes, include everyone that was paid during the audit period.
Do I need to include guest speakers and interim pastors?
Do I include bonuses?
Do I include utilities?
Yes, if they are an allowance. No, if they are reimbursed.
Do I include health insurance premiums?
Yes, if they are paid by the employee. No, if they are paid by the employer.
Do I include mileage?
What wages do I report?
Report the gross wages.
Should I include part-time people or people who no longer work here?
Yes, include anyone part-time or full-time (W-2 form holders) who was employed during the policy period. Also include any part-time or full-time contractors (1099 form holders) for the policy period.
Do we have to include those who receive a 1099 form instead of the W-2 form?
Yes, individuals who receive a 1099 form are similar to those who receive a W-2. Their payroll needs to be recorded as they are eligible for coverage under the workers' compensation policy.
Why do we have to include contracted individuals?
Contracted individuals may be eligible to receive workers' compensation benefits under your policy unless they carry their own workers' compensation insurance. If they have their own workers' compensation coverage, a copy of their certificate of insurance for the time period of the audit must be mailed with the payroll audit information. The certificate of insurance serves as proof of workers' compensation insurance coverage. If they do not have their own workers' compensation coverage, their payroll must be provided to us.
Should housing allowance be included in the total payroll or the housing allowance column?
You can include it with the salary payroll and indicate "included" in the housing allowance column or separate the payroll from the housing allowance placing each amount in the appropriate column. We will then add the two columns together.
Can I fax my audit information?
Yes, the fax number is (715) 539-4721.
Can I email my audit information?
Yes, the audit along with any additional documents can be emailed to firstname.lastname@example.org. Please make sure all documents have the account and policy number listed on them.
Do I have to use the form, or can I attach a spreadsheet?
Yes, you can use a spreadsheet, but be sure to include the following information:
Name of the entity we insure
Account and policy number
Name of each employee and/or contractor
Job title of each employee and/or contractor
Gross salary of each employee and/or contractor
Housing allowance of each employee and/or contractor
Meal allowance (number of meals or total dollar amount) for each employee/contractor (camps)
Can I send the report from my accounting software or do I have to use the form?
Yes, you can send a report however, please make sure it still has the basic requested information as listed in the prior question. Remove or black out any Personal Identifiable Information (PII) before submitting the payroll audit request. PII are items such as (but not limited to); social security numbers, driver’s license numbers, home address, etc.
My policy with Church Mutual is cancelled. Why do I have an audit form to fill out?
Even though your coverage is cancelled, the payroll information we are requesting is for the period of time coverage was provided.
I received the second request but have already sent our payroll audit in. What should I do with this?
If you have already completed or are working on the first request, you can disregard the second request. Multiple forms are sent out.
I have received the second request but never received the first request. What should I do?
Please complete the audit and return it to us. We send out multiple requests for the audit information.
Is there a penalty for being late?
No, there is no penalty for being late.
I missed the due date listed on the audit. Will my policy be cancelled?
There is no penalty for being late. Please complete the audit and return it to us as soon as possible.
The online form asks for seven (7) digits in my account number, and I only have six (6). What do I do?
Enter a zero (0) before the other six digits.
If an employee leaves or starts, do we need to inform Church Mutual?
You do not need to inform us right away. Wait unit you receive your audit request form. Then, list everyone that worked during the audit period. You can use the number of weeks worked column to indicate the number of weeks each employee worked.
What is the reason for the audit charge?
Generally, the estimated payrolls on the policy were lower than the actual payrolls reported causing an increase.
What if I made a mistake on my audit. How do I correct it?
You can submit a revised audit making note of the corrections. It will be reviewed to determine if a revised audit should be processed.
Will I get any paperwork after the audit is processed, other than the bill?
Yes, you will receive a premium adjustment notice in the mail.
Can you give me a premium breakdown between the church and the school or day care?
The premium adjustment notice will be mailed after the audit is processed. It will breakdown the audit by each code.