About

About the audit process

Pinnacol Assurance audits each policy at the end of the policy period

To ensure that the premiums you pay for your workers’ compensation are accurate, and to determine whether you are eligible for a return of premium, Pinnacol Assurance audits each policy at the end of the policy period. Here’s why.
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Policy Audit

Why audit?

Because your premium is calculated using estimated figures, it’s important for us to look at your premium using your actual payroll and exposures. These audits sometimes result in a return of premium. In addition, audits help ensure that no business has an unfair advantage because of incorrect classification or payroll assignment.

During an audit, the following information will be reviewed:

Ownership status
Business operations
Duties of employees
Payments to subcontractors

Types of audits

Self-audit

Just follow our step-by-step instructions to complete the audit yourself, at your convenience. Self-audits can be submitted online — the fastest, easiest way to complete an audit — or mailed to Pinnacol.

Field audit

One of our auditors will visit your place of business to perform an on-site audit. Field audits can usually be completed in two hours or less.

Office audit

This audit is conducted by appointment at Pinnacol's office. Call 303.361.4000 or 800.873.7242 for an appointment.

Documents to have ready

Employee records

Unemployment insurance tax reports
941 or 943 federal tax returns, whichever you submit
Payroll records for the audit period
Individual earnings records
Individual earnings records

Payments to workers outside of payroll

Detailed check register and/or cancelled checks
Cash payment journal

Subcontractor records

Reports that show payments to subcontractors
Proof of workers' compensation insurance for subcontractors
Documentation to confirm the status of independent contractors

Our auditors are experts in Colorado’s workers’ compensation statutes and regulations and can help you accurately audit and understand:

The classification of your business and workers
How your premium is calculated
How you can forecast future premium costs

Workers’ compensation covers your employees
in the event of a work-related injury.

The price of your policy reflects the total payroll and type of work performed. You can find a list of what should be included or excluded from the payroll here.
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