Insurance term
Payroll Audit
A payroll audit is a review of an employer’s payroll records by an insurance company or its representative, usually after a workers’ compensation policy period ends. The purpose is to confirm the correct final premium based on actual payroll, employee classifications, and other policy details.
Example
After the policy year ended, the insurer completed a payroll audit and adjusted the workers’ compensation premium based on the company’s actual payroll.
Related coverage
Workers Compensation
Mandatory coverage for workplace injuries and occupational illness.
Related terms
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