MPR will be utilizing the services of Premium Audit Results (PAR) again this year to complete our workers’ compensation payroll audits for the July 1, 2022 – June 30, 2023 fiscal year. This communication will outline the process, what to expect, and how to prepare for this year’s audits. All audits must be completed by August 11, 2023.

All Members that were in the MPR workers’ compensation program for this year ending on 6/30/2023 will be included in this audit.

The auditors will be examining all records that relate to contribution determination, including: ledgers, registers, contracts, journals, vouchers, tax reports, payroll and disbursement records, programs for storing and retrieving data.

Audit Notification Letters will be emailed to the MEMBER REPRESENTATIVE in the very near future, after June 30, 2023. This will include your assigned auditor’s name and contact information. You will work directly with your assigned auditor to schedule a mutually convenient time to proceed with the audit. The coverage period we will be auditing is July 1, 2022 – June 30, 2023. All audits must be completed by August 11, 2023.

PLEASE NOTE: THIS EMAIL IS GOING TO MEMBER REPRESENTATIVES ONLY; IF THE PERSON THAT WILL BE HANDLING THE AUDIT IS SOMEONE OTHER THAN THE MEMBER REP, PLEASE ADVISE SO THAT WE CAN UPDATE OUR COMMUNICATION FILE.

In-person Audits will be conducted where records are kept. The auditor will conduct an on-site examination of records and assessment of operations. 

The payroll submitted during the renewal process in January 2022 was only an estimate. Final payroll will be determined after the coverage year ends on 6/30/2023 by using the actual payroll exposures. If the final payroll is more than the payroll you estimated at the beginning of the policy period, you must pay the balance. If it is less than expected, you will be refunded the balance.

We ask that all Members prepare for their audit by gathering all necessary records prior to their scheduled meeting. 

  • Detailed payroll records summarizing earnings and deductions by employee during policy period; namely total gross wages, overtime wages, as well as pre-taxed benefit totals (for reconciliation purposes only).
  • Quarterly 941s and/or SUTA Reports
  • Payments to subcontractors and contract laborers paid via A/P
  • Certificates of Liability Insurance providing evidence of workers compensation insurance for subcontractors and contract laborers
  • Volunteers to help throughout the process.

Once the audit is complete, the auditor will review with you the Estimated vs. Audited exposures. Any changes in operations and staffing, or increases and decreases in pay rates, will contribute to the variance between the Estimated and Audited payrolls. These variances will be discussed and notated within the final audit report. Audit reports are returned to MPR in order to determine final settlement of your contribution.

We know this is a lot of information, so please do not hesitate to reach out to Kelly Wright [email protected] or Megan Richardson [email protected], with any questions or concerns.  

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