- Policyholders -

Payroll Audits

The premium for your policy is based on your annual estimated payroll.  A payroll verification audit is the assessment of the total payroll for your company during the policy period.  We will perform a payroll verification audit of your policy shortly after it expires.

How to Avoid Audit Surprises

Because your workers’ compensation premium is based on the estimated payroll of your business during the policy period, any additions of employees or job duties may result in a change to your premium.  You should inform your insurance agent of all changes so we can be notified to make any necessary adjustments to your policy.  Also make sure you collect proof of an active workers’ compensation policy or a valid exemption for each subcontractor you use.


The auditor will make two good faith attempts to contact you to schedule and perform the audit of your policy.  If you do not allow our auditors to perform the audit, your policy will be cancelled.

Records Needed for Your Audit

The auditor will need to see the following records:

  • Individual payroll records for all entities covered by your workers’ compensation policy
  • General ledgers, payroll journals, check stubs, and last year’s profit and loss statement
  • Schedule C, Florida RT-6’s, Federal 941’s, and any 1099’s
  • Total overtime per employee
  • List of all officers and their payroll, including bonuses and fringe benefits.  Include copies of valid exemptions if the officers are exempt from workers’ compensation
  • Amounts paid to subcontractors and casual laborers, along with a description of the services they provided and a breakdown on how much was paid for labor; also have the invoices for materials and equipment
  • Certificates of Insurance or valid exemptions for all subcontractors and casual labor used during the policy period.  (Please note: If you cannot provide either an exemption or proof of insurance for your subcontractors, you will be charged premium on the amount you paid them.)

If You Don’t Agree with the Audit

When we have completed the audit of your policy, you will receive written instructions on how to dispute your audit if you do not agree with it. Please send your dispute, the reason you disagree, and any supporting documentation in writing to our Audit Department.  The contact information will be included with the paperwork you receive.  Remember to include your name and policy number on the dispute.  You can print a Payroll Verification Audit Dispute Form from the Resources & Documents page of our website.

Audit Payment Plans

Payment plans for additional premium that may be owed based on your policy’s payroll audit are available upon request.  Please call the Audit Department at 888-262-4483 or email us at fubaaudit@fubaworks.com if you would like further information.