Audit Information

Our department orders, reviews and bills premium audits upon your policy’s conclusion to calculate the final premium amount.

FAQs

Field audit (final)
A premium auditor will contact you for an appointment to visit your location to review your operations and payroll records to ensure the accuracy of the classification assignments on your policy and to calculate the payrolls earned during your policy term.

Voluntary audit (final)
For qualifying accounts, a voluntary audit form will be mailed to you at policy expiration for you to complete and return to us. The information captured on this form is the same as what is obtained during a field audit, except no on-site visit is required.

  • If you require assistance completing this form, you may contact us at or contact your broker.

Check audit (mid-term)
For qualifying accounts, a check audit form will be mailed to you for completion during your current policy term. This is to ensure your payrolls are in line with the estimates to avoid any large deviations at final audit.

  • If you require assistance completing this form, you may contact us at or contact your broker.

  • Payroll records for the period being audited (please note: the audit requires all paycheck dates that fell within the audited period, not the period the paychecks were earned).
  • The records should be organized by class code and summarized monthly, quarterly or by audit period.
  • Quarterly tax reports (state unemployment returns; Federal Form 941) applicable for your policy term.
  • A list of clerical employees, their titles and description of duties.
  • A list of corporate officers or owners, their titles and duties.
  • If you have a qualifying section 125 plan, these amounts should be segregated by class code.
  • If any employees earned overtime or doubled time: these amounts should be segregated by class code.
  • If you used any subcontractors, please have their certificates of insurance ready for review.
  • Other records or sources that may be requested for review: cash disbursement journal, general ledger, check register, sales journal, cash receipts, job cost records and/or contracts.
  • For dual-wage policies: please have time cards ready for review.*

*Please Note: If proper time cards are not maintained, all payrolls will need to be placed into the lower wage/higher rate classification.*

We will need to estimate your final audit premium which may result in paying a greater amount than your original premium. Also, we may need to cancel any current policies that are written through Atlas due to non-compliance with the audit.

Please contact us at for:

  • Any questions, concerns or disputes regarding your final audit bill
  • If you would like a copy of the auditors’ worksheets*

*Please note: As this document contains confidential payroll information, we can only send them to a named principal of your company or the person with whom we conducted your audit. If you wish us to send them to a different person (including a broker or agent), please e-mail a letter on your company letterhead to us authorizing the worksheets to be released.

SB 189 Waiver FAQs

No. The revised terms only apply to policies incepting or renewing on or after July 1, 2018.
Labor Code section 3352(b)(2) states: “a policy or contract that is entered into or renewed in compliance with this section is subject to this section as it read on the date that the policy or contract was entered into or renewed.”

Effective July 1, 2018:

  • An officer or director of a corporation may be excluded if he/she owns:
    • At least 10% of the issued and outstanding stock
    • At least 1% of the issued and outstanding stock if his/her parent, grandparent, sibling, spouse or child owns at least 10% of the stock and is also covered by a health insurance policy or health care service plan
  • An officer or director who is the sole owner (owning 100% of stock) does not require a waiver to be excluded. That individual may elect to be included pursuant to Labor Code section 4151(a). If you wish to be included under this provision, please contact your insurance broker.

Effective July 1, 2018:

  • An owner of a professional corporation who meets the following criteria may be excluded:
    • a practitioner rendering professional services for which the professional corporation is organized, and is covered by a health insurance policy or a health care service plan
  • An officer or director who is the sole owner (owning 100% of stock) does not require a waiver to be excluded. That individual may elect to be included pursuant to Labor Code section 4151(a). If you wish to be included under this provision, please contact your insurance broker.

No, new waiver forms are not required. A signed waiver will stay in effect unless the individual who submitted the waiver provides the carrier with a written withdrawal.

The appropriate waiver form must be signed by the individual eligible for exclusion; not by the employer or a representative thereof. The exclusion will be effective the date we receive the properly executed waiver form(s) and will remain in effect unless a written withdrawal is received. We may elect to backdate the acceptance of the waiver form up to 15 days prior to the date of receipt with the consent of the individual signing the waiver. This only applies to policies incepting or renewing on or after July 1, 2018. If your policy incepted/renewed prior to this date, you will not be eligible for exclusion at this time. For further assistance, please contact your insurance broker.

An individual who meets the following criteria may be excluded for coverage if he/she meets the criteria for exclusion for the respective type of entity:

  • Holds the power to revoke a trust, with respect to shares of a private corporation held in trust or general partnership or limited liability company interests held in trust, who is deemed to be an employee under the relevant statutory provisions for that type of entity

No. Each individual person waiving coverage must meet the ownership requirement. This is because in both Labor Code section 3352(a)(16)(A) (pre-July 1, 2018) and 3352(a)(16)(A)(i) (post-July 1, 2018) an officer or member of the board of directors is referred to in the singular.

For policies incepting or renewing on or after July 1, 2018, we may elect to backdate the acceptance of the waiver form up to 15 days prior to the date of receipt with the consent of the individual signing the waiver.

Example: A policy is effective July 1, 2018 and the waiver form isn’t received till July 20, 2018. We will amend the policy to have the officer included July 1, 2018 – July 5, 2018 and then excluded July 5, 2018 – expiration.

Please contact your broker to notify them of the ownership change on the policy. They will relay the change to us for proper advisement and handling.

Please click here for the California Legislative Information and search for bill 189:
http://leginfo.legislature.ca.gov

Should you have additional or policy specific questions, please contact your broker.