PAYROLL AUDITS

Stonetrust conducts audits of the payroll records of policyholders to verify the accuracy of the premiums paid. If your premiums have been under-reported, you will receive an invoice for the amount due; if you have overpaid, a credit or refund will be issued.

Stonetrust has contracted with independent auditing firms whose representatives contact the policyholder directly to schedule a convenient time to conduct their audit. Most audits can be completed in a fairly short period of time (less than an hour) as long you have the proper records in order beforehand. Items the auditors will be requesting include the following:

• Payroll records
• General ledger
• Quarterly tax reports (federal 941's and state unemployment)
• W2's and 1099's
• List of all subcontractors
• Certificates of Insurance from subcontractors

Your records should have overtime pay shown separately from straight time; bonus pay should be clearly identified. Additionally, invoices from uninsured subcontractors must show the breakdown between labor and materials. In cases where an invoice shows only one dollar amount for labor and materials, the full amount will be allocated to payroll.

If you use a payroll service, please be sure to request the proper records from them prior to the auditor's visit. Or, if the audit must be conducted at the office of your accountant or CPA, please call the auditor as soon as you receive notification of his visit so that he can schedule time with your accountant or CPA.

Upon completion of your payroll audit, be sure to meet with the auditor to review your audit report. By addressing your questions then, you will avoid any unnecessary surprises when you receive your final audit invoice.

It is important to know that deliberate under-reporting of payroll is considered insurance fraud and can be prosecuted to the fullest extent of the law.

If you have any questions or encounter any problems during the audit process, please contact our office at (800) 311-0997.