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In Good Company
Kevin Smith, Executive Director
Payroll Audits
Each spring, AMLJIA members are asked to complete an Exposure Questionnaire to identify yourexposures and coverage needs. In the questionnaire, we ask that you submit an estimated payroll with that questionnaire so we can calculate workers’ compensation and general liability premium for the coming year.
As we all know, actual payroll can vary considerably from estimates made months earlier. A special project may come to an end earlier than expected, or grant funding may come through that allows you to hire several employees for a new project. A position may remain vacant for a long period while you search for the ideal candidate to fill the position.
No matter the reason for variation in estimated payroll, we want to make sure that each member is treated fairly. No member should pay for coverage they don’t need, and no member should get a “free ride” by having other members paying for their coverage. Whether a member has five employees or five hundred, they should expect to pay their share for coverage.
In July, you should have received a Member Payroll Audit report for 2011 showing the payroll by job class that you reported last year. You were asked to review it, make any adjustments (remember to report overtime wages at the straight-time rate), and return it to us by August 31, 2011. Please return your payroll audit if you have not already done so. Any member who does not return a completed audit will receive an automatic upward adjustment to their account.
Thank you for your cooperation in completing the Member Payroll Audit. If you have any questions or need help completing the audit form, please contact your broker or call your AMLJIA Risk Control Specialist or underwriter Paul Bryner at 1-800-337-3682.
I hope you’ve enjoyed your summer!
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