Premium-audit records for staffing and PEO arrangements
Staffing and PEO records are hard because the invoice, employer relationship, policy structure, and worksite duties can sit in different systems.
What the official record says
The NAIC guideline for professional employer organization arrangements says a PEO should furnish complete payroll records for covered co-employees, itemized by policy or certificate number and by workers’ compensation class code. It also contemplates insurer access to client records and worksite inspection. The guideline is a model for state consideration, not a rule automatically in force everywhere. The controlling policy and the adopting state’s law still need to be checked.
What to check on the document
Do not treat a client invoice as a payroll journal. Preserve the worker-level record and connect it to the agreement and policy that place coverage.
- Identify direct employees, leased workers, temporary workers, subcontractors, and client employees as separate record groups.
- Map payroll to the policy or certificate and the client location for the same period.
- Put worksite duties beside the carrier’s existing codes and route any code dispute through the broker.
How to use the result
A staffing worksheet should expose double counting and missing support without taking a position on a contested employment relationship. When a carrier statement differs, state the exact payroll line, client, period, and dollar divergence. If the issue turns on who employed or directed a worker, the contract and state law matter beyond the arithmetic.
A premium review starts with the policy, the carrier’s audit statement, payroll records, and subcontractor documents for the same policy period. We preserve the class codes the carrier used and show the described work beside them. A class-code argument belongs with the broker and carrier. Auditors are often right; the free check says so when the bill looks right.
Operated by Reality Contact, LLC. This is document preparation and arithmetic, not insurance advice. Reality Contact, LLC is not an insurance agent, adjuster, or licensed insurance consultant. We do not contact your carrier; you or your broker sends it. No contingency.