To accurately calculate a Members' premium the NHADA WCT must perform an audit to determine members' actual payroll figures for the previous year. Auditors will be reviewing the 2019 final payroll figures to determine how accurately Member's estimated their payroll figures.
One auditing firm, NEIS, will be performing these audits to keep them consistent. The annual audit is critical. Audits are performed beginning in January and are required to be completed by March 25. Members can assist in this process by scheduling the audit timely, preparing the audit, and promptly meeting with the auditor on the set day and time.
What do I need to provide?
- The General Ledger
- Payroll Records
- At least three-quarters of the member's filed, quarterly tax returns (IRS-form 941)
Gross overtime costs by each classification of employee must be totaled. Overtime is deducted from the payroll by classification for premium calculation purposes.
The auditor must see the gross overtime broken out by classification in order to exclude it. All employees should be identified by name and title, including executive officers and owners.
- All 1099 Forms
This is to ensure that "employees" as defined by the workers' compensation statute RSA 281-A: 2, VI, (b) (1), are not misclassified as independent contractors, http://www.gencourt.state.nh.us/rsa/html/XXIII/281-A/281-A-2.htm.
If an audit from the NH Dept. of Labor, U.S. Dept. of Labor or IRS reveals a misclassified employee, severe civil penalties may be levied. Please remember that swap drivers are generally considered employees and not independent contractors unless they are employed by a company that provides that service to you and is covered by their own workers compensation policy or they hold themselves out to be a business unto themselves. If you have any questions please contact Pete Sheffer or the NHADA Legal Hotlines.
What happens after the audit?
Upon receipt of the completed audit, members' 2019 premium will be re-calculated and a final bill will be produced.
If the net result is an overpayment: the overpayment will be applied to your 2020 premium. All members will receive a copy of their audit with a bill or an explanation of how the overpayment will be applied to future premium.
If the net result is an underpayment: a bill will be sent, and is due within 30 days of receipt.
If you have questions or concerns about the audit please notify us immediately. Once the rebate checks are disbursed in May, an audit cannot be changed.
How does my premium work?
The 2020-year’s premium will be estimated based on the actual audit payroll figures from 2019. We understand that payrolls fluctuate over the course of the year, particularly in the current economic climate. Therefore, in June of every year, we send out a self-audit form for members to complete in order to adjust the payroll figures. Our collective goal at the end of the year is to avoid large premium adjustments. If members believe at any time during the year that their payroll figures have changed, please contact Marianne Gourgiotis to update your payroll figures. Marianne will gladly recalculate your premium and your monthly billing will be adjusted accordingly.
Remember to be prepared for your audit, have your materials ready and please do not keep the auditor waiting. Accurate premium billing is dependent upon accurate audits. Please contact Marianne Gourgiotis if you have premium questions at 1-800-852-3372.
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