At the beginning of the policy period, the policy premium was estimated based on information about the business operations and payroll. Once the policy period has expired, the Premium Audit is able to verify the actual operational and payroll information for the period. The Premium Audit is completed in order to determine the actual premium for the policy period.

A premium audit may be conducted at various times during the policy period. The types of premium audits include:

Preliminary Audit
For new policyholders, a preliminary audit may be performed at the policy inception and helps to ensure that the estimated exposures and classifications on the policy adequately reflect the policyholder’s operations.

Interim Audit
Interim audits may be performed quarterly, semi-annually or upon request and are used to adjust policy premium during the policy period.

Cancellation Audit
A cancellation audit may be completed upon a policy’s cancellation in order to determine the actual premium for the period that the policy was in effect.

Final Audit
A final audit is completed upon the policy expiration and determines the actual premium due for the annual policy period.

At the time of the audit it is important that a representative who is knowledgeable about your operations be available to answer questions about your business operations, ownership information, and related information.

You will need to provide the following information as part of your audit:

  • Payroll Register. Preferably Year-To-Date Payroll Register which includes all employees (active and terminated) and also shows the payroll components such as gross wages, overtime wages, etc.
  •  Quarterly Payroll Tax Returns. Federal 941s and Rhode Island DET-TX-17s
  •  1099s and 1096
  •  Cash Disbursements Journal or Business Check Book
  • Sales Journal
  • Additional information may be required as deemed necessary by the auditor.

You may also need to provide additional records depending on your business:

  • Temporary Employment Agency Documentation:
  • DWC-09 Certificate of Workers’ Compensation Insurance, and
  • Invoices
  • Subcontractor Documentation:
  • Certificate of Workers’ Compensation Insurance, and
  • Invoices
  • Independent Contactor Documentation:
  • DWC-11-IC “Notice of Designation as Independent Contractor Form” filed with the RI Department of Labor and Training,
  • Certificate of General Liability Insurance, and
  • Invoices

See the Premium Audit page for more information.

Please provide the most recent four quarters of your Federal 941 or RI TX17 filings available.

Here is a list of the most common records needed for a premium audit:

  • Payroll Register. Preferably Year-To-Date Payroll Register which includes all employees (active and terminated) and also shows the payroll components such as gross wages, overtime wages, etc. For more information on payroll inclusions and exclusions for workers’ compensation purposes see Quick Guide to Payroll Inclusions and Exclusions.
  • Quarterly Payroll Tax Returns. Federal 941s and Rhode Island DET-TX-17s
  • 1099s and 1096
  • Cash Disbursements Journal or Business Check Book
  • Sales Journal

You will need to provide the following information as part of your audit.

  • Payroll Register. Preferably Year-To-Date Payroll Register which includes all employees (active and terminated) and also shows the payroll components such as gross wages, overtime wages, etc.
  • Quarterly Payroll Tax Returns. Federal 941s and Rhode Island DET-TX-17s
  • 1099s and 1096
  • Cash Disbursements Journal or Business Check Book
  • Sales Journal
  • Additional information may be required as deemed necessary by the auditor.

You may also need to provide additional records depending on your business. 

  • Temporary Employment Agency Documentation: DWC-09 Certificate of Workers’ Compensation Insurance, and Invoices
  • Subcontractor Documentation: Certificate of Workers’ Compensation Insurance, and Invoices
  • Independent Contactor Documentation: DWC-11-IC “Notice of Designation as Independent Contractor Form” filed with the RI Department of Labor and Training, Certificate of General Liability Insurance, and Invoices

A policyholder may have an actual audit completed by requesting one, in writing, within sixty days of the waived audit notification. An audit can be requested by sending an email to the Premium Audit Department at mailaudit@beaconmutual.com.

Yes. A premium audit will still need to be conducted in order to determine the actual premium for the policy period.

Yes. The Pay as You Go Program is a premium payment plan and does not replace a premium audit. A premium audit is needed in order to complete other aspects of the audit such as reviewing your operations, reconciling the payroll to the tax returns, verifying subcontractors, etc.

A premium audit is completed upon the policy’s expiration or cancellation in order to determine the actual premium for the period your policy was in force and coverage was provided.

At the beginning of the policy period, the policy premium is based on information about the business operations and estimated payroll.  Once the policy period has expired, the Premium Audit is able to verify the actual operational and actual payroll information for the policy year.  While business operations may remain consistent, payroll changes from year to year. Therefore, an audit may be conducted yearly in order to reflect the actual payroll for the policy period.

The Phone Audit form and requested documentation can be sent to the Phone Auditor by mail, fax, or by a secure website. The Phone Auditor’s name, phone number and email address are included in the letter.

MAIL: ATTN: Premium Audit Department (Premium Auditor’s Name) Beacon Mutual Insurance Company One Beacon Centre Warwick, RI 02886

FAX: ATTN: Premium Audit Department (Premium Auditor’s Name) Beacon Mutual Insurance Company 1-401-825-2639

ELECTRONICALLY: Beacon Mutual requires the use of a secure transmission. Please contact the phone auditor directly for instructions on establishing a secure link for transmitting payroll information. If you cannot locate the name of the Phone Auditor, please contact Beacon at: mailaudit@beaconmutual.com for instructions on establishing a secure link.

The Mail Audit form and supporting documentation can be sent to Beacon Mutual by mail, by fax, or electronically.

MAIL: ATTN: Premium Audit Department Mail Premium Auditor Beacon Mutual Insurance Company One Beacon Centre Warwick, RI 02886

FAX: ATTN: Premium Audit Department Mail Premium Auditor Beacon Mutual Insurance Company 1-401-825-2639

ELECTRONICALLY: Beacon Mutual requires the use of a secure transmission. Please contact Beacon at mailaudit@beaconmutual.com for instructions on establishing a secure link for transmitting payroll information.

No. The premium audit needs to correspond to your policy period and will typically take place within 60 days of your policy expiration date.

The auditor can contact your accountant or payroll company in order to obtain the information needed for the audit. However, most payroll companies and accountants will not provide any information without first receiving your approval to do so.

As an employer, it is important to obtain and have on file, proof of workers’ compensation coverage for the entire period subcontractors’ services are engaged.

Download Tips for Contractors and Subcontractors for more information.

As an employer, you can help clarify for the auditor that persons engaged in work on your behalf – who are not paid via payroll – are independent contractors by always requesting and keeping adequate proof of coverage on file.

Download Independent Contractors overview for more information.

There are several factors to consider when doing work outside of Rhode Island. Please contact your agent who can guide you through the process of determining whether or not an additional policy may be needed.

The premium audit is a mandatory requirement of your workers’ compensation policy. Failure to comply with the audit may result in a premium adjustment to your expiring policy term through the application of an Audit Noncompliance Charge of up to two times your Estimated Annual Premium. Additionally, you may see a premium increase on your current policy, or cancellation of your policy.

Review your premium audit report for any areas of concern. Discrepancies must be reported to Beacon Mutual within 30 days. Failure to do so will forfeit your opportunity to dispute the audit.

Please mail or fax a letter signed by a principal of the company to the Premium Audit Department in dispute of the audit. Please explain the details of the discrepancy and provide any applicable supporting documentation.