At binding, the business supplies expected payroll by job type. That estimate, multiplied by the rate for each class code and adjusted by the experience modifier, produces the premium billed across the policy term.
Everything about it is provisional. The estimate is a placeholder that the audit exists to correct.
Why it matters at audit
A deliberately low estimate does not save money. It defers the cost to the audit, where it arrives as a single bill instead of spread across twelve installments.