Premium Audit Checklist

We’ve designed this checklist to assist you in gathering the necessary documents to complete your state bureau-required audit, which ensures you have the right exposure on your policy. Note, definitions and requirements vary by state.

 

We want your audit process to be as easy as pie. To ensure this, it’s important that your Pie audit point of contact is knowledgeable about employee job duties, business operations, and reporting.

 

 If you have questions, please reach out to your agent or audit[at]pieinsurance.com.

Operational information

  • Description of your business operations
  • List of business location(s)
  • List of owner/officers and their job responsibilities
  • List of employee names and description of work performed (not job titles)

Payment information

  • Payroll records for W-2 employees (system generated report for the policy period)
  • Federal 941 or California DE9c preferred (quarters should match or overlap policy period). If a 941 is not available: Form 940, W-2, or W-3 can be used if the policy period runs for a calendar year.
  • Payroll summary needs to include the following items:
    • Employee Name
    • State where work is performed
    • Gross wages per individual
    • Overtime*
    • Double-time*
    • Tips: Excess tips above federal minimum wage may be excluded in Delaware and Pennsylvania, those above state minimum wage may be excluded in Vermont
    • Section 125 Cafeteria Plan (Employee Contribution & excludable only in California)
    • Furloughed wages (wages paid for not working during Covid-19 pandemic)

For California construction policies, timecards showing clock in and clock out times are required, as well as a payroll report showing hourly pay rates.

Subcontractor, 1099, cash, casual, or OCIP/CCIP information (if applicable)

  • Payroll records for use of 1099 labor
    • Preferred: Vendor Summary Report
    • Form 1099 or Form 1096 can be used for calendar year policies
  • Contracted labor information
    • Contract labor or subcontractor name
    • Description of work performed
    • State in which work was performed
    • Date work started and stopped
    • Total amount paid
    • Total amount paid for materials
    • Workers’ Compensation Certificate of Insurance (COI) for Subcontractors (If no workers compensation COI can be provided, additional tests of independent status may apply in order to exclude subcontractors.)
  • Certified payrolls on OCIP/CCIP jobs
  • Additional information that may be requested

* Not excludable in Delaware, Pennsylvania, or Nevada.