Premium audit FAQs
Common terms & definitions for premium audits
We've compiled a list of terms and definitions to help you make sense of some of the premium audit terms on our website.
Keep in mind that our terms and definitions are intended for information purposes only, and the way they're interpreted or applied may vary from state to state.
The policy period for which you will provide the information for the premium audit.
Work that is not typically in the scope of your normal business operations and does not advance your business. Usually performed on an irregular or one-time basis.
Refers to work done by independently employed workers who have a contract with your business for a limited period of time, use their own equipment and pay taxes on their own.
Certificate of Insurance: a document from an insurance company that a subcontractor uses to prove to your business the existence of his own insurance coverage for a set period of time.
Detailed overview of your business and how it operates, including the industry and type of clients served, the product and/or service offered, and how the product and/or service is delivered.
Employers who withhold income, Social Security or Medicare tax from employees’ paychecks or who pay the employer’s share of Social Security or Medicare tax file these forms with the IRS to report these taxes.
The amount paid for hours worked above the employees’ regular 40-hour workweek.
The total amount charged by your business and any other entity operating under your business’s name for all products sold or distributed, all services performed, all dues or fees collected and/or all properties rented, excluding any taxes.
Total compensation paid to employees prior to any deductions. Includes wages or salaries, commissions, paid time off, bonuses, overtime and stipends.
The total gross payroll for all employees and officers/owners as reported on the tax forms during the policy period.
The legal structure of your business (corporation, individual, partnership, LLC, LLP, nonprofit and such).