Audited premium

The audit reconciles reported payroll against source documents, applies the correct class codes, removes any allowable exclusions, and recalculates the premium.

The difference between this figure and what was already billed becomes either an additional bill or a return of premium.

Related terms

• Estimated premiumEstimated premium is the amount charged at the start of a workers' compensation policy, calculated from projected payroll before the actual figures are known.
• Audit basisThe audit basis is the final payroll figure, by class code, that premium is calculated against once inclusions and exclusions have been applied.
• Premium auditA premium audit is the review a workers' compensation carrier performs at the end of a policy period to replace the estimated payroll the policy was priced on with the payroll the business actually paid.

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