Compliance with the worker’s compensation audit has always been important, 2017 will prove to be more important than ever.
Effective January 1, 2017
The Wisconsin Compensation Rating Bureau (WCRB) is requiring a mandatory audit noncompliance charge (ANC). With this change, it is extremely important that you complete the audit request as soon as it is received from your workers compensation carrier.
What will happen if I don’t complete the audit?
Your workers compensation insurance company will be required to invoice you an ANC, equal to two times the estimated annual premium, if you do not complete and return the final audit.
$50,000 Estimated Annual Premium + $100,000 Audit Noncompliance Charge $150,000 Total Amount Due
Why is the WCRB requiring the Audit Noncompliance Charge?
To provide uniformity in assessing a penalty
To give an incentive for insureds to cooperate with the premium audit as required by the policy contract
To improve compliance with the audit process
To ensure rate accuracy and sufficiency
Understanding the Audit Noncompliance Charge
It is premium and is subject to premium tax
The ANC endorsement is not optional and is mandatory on all Wisconsin workers compensation insurance policies
The ANC endorsements will be treated the same as the WI Law Endorsement and the WI Cancellation and Non-renewal endorsement.
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