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The insurance company uses your estimated payroll for the upcoming year to calculate your Workers’ Compensation premium at the beginning of the policy term. After the policy expires, the insurance company recalculates the premium based upon the actual payroll amount for the policy term, rather than the estimated payroll amount. Should there be a premium difference, the appropriate premium credit or premium charge will be assessed accordingly.

The workers’ compensation payroll should only include gross payroll for full time/part time employees, not independent contractors. The distinction between an employee and an independent contractor is not set in stone; however, independent contractors share some characteristics, including the following:

  • Independent contractors typically receive payment in a lump payment or other arrangements. If a person is on the
    employer’s payroll and receives a steady paycheck, that person is an employee.
  • Independent contractors often supply their own equipment, tools, and materials.
  • Independent contractors can be discharged at any time and can choose whether to come to work without fear
    of losing employment.
  • Independent contractors usually control their hours of employment.
  • Independent contractors often have other jobs and/or employers from whom to depend on for work.

The distinction between independent contractors and employees is increasingly important because of the increased
diligence by the IRS and state agencies to root out instances of misrepresentation. Because employers are not required to
pay workers’ compensation and unemployment taxes to independent contractors, the IRS wants to ensure that all
workers are classified correctly.

Please complete the form below in its entirety. Email Heather Cox with any questions.

Workers’ Compensation Audit Form

Your Information

First Name
Last Name
Billing Address for Return Premium (if applicable)
Billing Address for Return Premium (if applicable)
City
State/Province
Zip/Postal

Audit Information

$
Please note the actual payroll can include more than just cash compensation. For example, if any individuals receive room and/or board, the cost of this benefit needs to be included in the payroll figure.

Maximum file size: 516MB

The DE9 form in California is a document used to verify the classification of a business for workers’ compensation insurance purposes, ensuring accurate premium calculations. MJ Sorority is required to obtain this form to properly assess your business’s risk level and to ensure you are correctly categorized, which can impact your insurance rates.