Installment adjustments after true up

If the true up payroll you reported to the BWC this summer was significantly different from your payroll in the 2017-18 policy year, be prepared for the BWC to adjust this year’s Estimated Annual Premium (EAP) and installment payment amounts to match your true up payroll in the 2018-19 policy year.

If last year’s payroll is not a good estimate for the current policy year, contact the BWC to advise what payroll numbers it should use for each manual classification.

The BWC wants your EAP to be as accurate as possible.

If you overpay your premium and will be owed a true up refund next summer of more than $5,000, the BWC will initiate an audit so you can explain why your payroll was lower than estimated.

If you underpay your premium, you will have a big balloon payment due in August that you may not be prepared for.

The BWC will not make any adjustments after April 1, so advise the BWC as soon as you know your payroll should be adjusted.

Posted in audit, premiums.