Frequently Asked Questions

(Premium Billing, Endorsements, Self-Audits, Final Premium Audits, Renewals, Terminations/Reinstatements)

PREMIUM BILLING

1. When is my invoice due?
   Invoice due dates depend on the inception date of your policy. Policies with an effective date of the 1st–15th have invoices due on the 1st of the month. Policies with an effective date of the 16th–31st have invoices due on the 10th of the month.
   
   Do I have a grace period?
   Yes. A pending termination is issued on the 5th of the month if your invoice was due on the 1st and payment has not been received. A pending termination is issued on the 15th of the month if your invoice was due on the 10th and payment has not been received.
2. Why do my invoice amounts change every month?
   Premium is billed on estimated payroll. Any premium bearing endorsement, which has generated since the last invoice date could affect your monthly invoice amount. Depending on your billing plan, your renewal down payment invoice could be a different amount than your previous month’s installment.
3. Why am I billed in advance?
   PBOA/Risk Services bills in advance in order to comply with all state and carrier requirements. In addition, billing in advance gives the insured an opportunity to split the renewal down payment if applicable to the billing plan.
4. Can I pay my invoice with a credit card?
   Currently PBOA/Risk Services does not offer credit card payments as an option. Payment is acceptable in the form of a check or you may pay your bill online at:
   
   https://payments.bankofamerica.com/epaybill/StartAction.do?pboa
   
   For our insureds without computer access, PBOA/Risk Services can accept payment by phone. Please contact your Billing Team or (800) 226-0793 ext. 5815 for assistance.

ENDORSEMENTS

1. What is an endorsement?
   An endorsement is any change made to your policy. Changes include, but are not limited to adding or deleting credits, such as safety, drug free work place, contractor’s credit, liability limits, payroll, address, or exposure changes, etc. Written documentation is required to process all change endorsements.
   
   Does an endorsement change my premium?
   Changes in exposure could affect your premium. There are also non-premium bearing endorsements such as ownership and address changes that would not change your premium.
2. If I am being billed for an endorsement, why haven’t I received the endorsement yet?
   All endorsements are mailed to your agent for review, countersigning and then provided to you.
3. My payroll has changed. Why can’t I wait until the audit to get the change endorsed?
   Endorsing the payroll change helps eliminate any potential overpayment or underpayment of premium during the policy period.

SELF-AUDITS

1. Why do I have to do a Quarterly self-audit? Will this impact what I have to pay?
   According to Florida statute 440.381 each employer shall submit a copy of the quarterly earning report required by Chapter 443. Quarterly Self-Audits are for the insured’s benefit, to reconcile the payroll provided when the policy was issued. Your monthly installment may be affected if your payroll increases or decreases resulting in a change to your current premium.
2. How do I complete the quarterly self-audit form?
   Please follow the steps below to complete a quarterly self-audit form.
   1) List # of employees for each W/C Classification on the policy.
   2) Using your quarterly UCT-6 or 941 enter gross payroll for each classification in Column A.
   3) Under Column B enter exclusions i.e. tips, 1/3 of premium overtime, and Officer excess (wages > $2,100 per week or exclude total payroll of exempt officer).
   4) For each Classification subtract Exclusions from Gross payroll and enter that amount in the Payroll Subject to W/C Premium line.
3. If I’m a monthly self-reporter, do I have to complete a quarterly self-audit?
   No. You are not required to complete the quarterly self-audit.
4. How do I complete a monthly self-audit?
   Please follow the steps below to complete a monthly self-audit form.
   1) List the number of employees for each Classification on the policy under column 3.
   2) Enter Actual Gross Payroll for each Classification in column 4.
   3) To complete column 6 you must follow the following formula: (Column (4) / 100) x Column (5) = Premium (6)
   4) Add up all Premiums (6) and multiply that total by the EZ Premium Factor (2) = Subtotal (3)
   5) Your subtotal (3) is the total amount due (4).
5. What is the EZ premium factor?
   EZ Premium Factor is a factor generated by our processing system, which combines all credits/debits applicable to your policy into one factor.
   The EZ premium factor is updated after your monthly self-audit report has been entered. If your report has not been processed prior to the next months report being generated the EZ Premium factor could be inaccurate.

FINAL PREMIUM AUDITS

1. What is a final premium audit?
   A premium audit is a review (an adjustment) of your actual payroll records to insure accurate billing of your Workers’ Compensation premium.
   
   Why do I have to do a final premium audit?
   According to most state statutes premium audits are required to calculate final and total payroll for Workers’ Compensation policies.
2. How frequently do I have to do a final audit?
   Final Audits are required at the expiration of each policy year.
3. What is included to calculate total payroll?
   Examples of payroll are…..Wages, salaries, any cash received for bonuses, commissions, holiday, vacation, sick pay, housing allowance, cafeteria plans, and vehicle expense, etc.
4. What else could be considered as payroll on the audit?
   Payments made to uninsured subcontractors and contract labor.
5. Who do I contact if I don’t agree with my audit results?
   Contact the Audit Team or (800) 226-0793 ext. 5910 listed on your invoice and provide a formal written explanation of your dispute.
6. What information or documents should I have available at the audit?
   Records that may be requested to complete the audit are: Payroll Records, General Ledger, Cash Disbursements Journal, Check Book, and Certificates of Insurance for any subcontract or contract labor.
7. Who is going to do the audit?
   Risk Services and PBOA contract with several national vendors (fee companies) to gather the necessary information to complete the audit.
8. Why was subcontractor payroll included on my audit?
   Any subcontractor that does not have proof of a Workers’ Compensation policy or a valid exemption will be included as payroll on your policy.

RENEWALS

1. I received a bill for my renewal. Why haven’t I received my renewal policy yet?
   All polices are mailed to your agent for review, countersigning and then provided to you.

TERMINATIONS/REINSTATEMENTS

1. Why did I get a cancellation notice?
   Cancellation notices are issued for Non-payment of premium, Non Compliance of audit requirements, Underwriting reasons or Non Renewal and Insureds request.
2. I paid the past due amount. When will I get a reinstatement notice?
   Reinstatements are issued and mailed on the next business day after the payment has been applied to your account.
3. I want to cancel my policy, what should I do?
   You will need to contact your Agent to complete and forward the necessary forms to our office for processing.
4. Why would a carrier cancel your policy if all invoices are paid?
   The carrier could cancel your policy due to Non Compliance of audit requirements, Underwriting reasons or Non Renewal.