What is a premium audit?

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A premium audit is the confirmation and verification of the payroll reported and the classification code(s) assigned to the business operations on your policy.

The rules set forth in the National Council on Compensation Insurance (NCCI) Basic Manual and Scopes Manual are used to properly assign classification codes, determine reportable payroll, and calculate the final premium due.  For specifics about the Basic Manual and the Scopes Manual, contact your agent or the State Insurance Fund.

In this section, you will find information to assist you with the audit process.  If you have specific questions about your policy, please contact the State Insurance Fund.

Voluntary audit

A voluntary audit is a request for you to provide payroll information on a payroll report form. All policyholders receive a Renewal Payroll Report form at the end of the policy period to report annual gross payroll.  Some policyholders will receive interim payroll report forms to report payroll for a specific period of time. These reports should be completed and returned to our office by the due date shown on the report.

   Do not send payment with your report. We will calculate the amount of premium you owe and send you a statement.

Phone audit

A phone audit is generally used to review information you have submitted to the State Insurance Fund on a payroll report. An audit representative will call you to review the information.

Mail audit

A mail audit may be requested if your payroll records are maintained in another state. A mail audit requires you to submit certain payroll information and related documentation to our Boise office for review.

Physical audit

A physical audit is conducted at your place of business and will involve a review of your business operations and  business records. An audit representative will contact you to arrange an appointment for a physical audit.

Close-out audit

A close-out audit is required when your policy is cancelled.  The close-out audit is a request for you to report your final payroll for the policy period.  We will mail you a close-out audit report form which you will need to complete and return by the due date printed on the form.  In some cases, we will also conduct a physical audit to determine the final premium for the policy period.

Preliminary audit

A preliminary audit is an audit conducted at the beginning of a policy period. During a preliminary audit, a State Insurance Fund auditor will meet with you to review and confirm business operations, and to verify classification codes. A preliminary audit will assist you in determining the proper distribution of payroll to each class code. If you are a new policyholder, or if you have multiple class codes, a preliminary audit can be very helpful.

Interim audit

The interim audit is a physical audit conducted during the course of a policy year. Interim audits are useful when businesses have complicated operations or when business operations fluctuate a great deal during the policy period.  An interim audit will help keep your payroll reporting on track even though your business operations are changing.

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