Premium Audit Payroll Exposure Adjustment Tool

Audit actual estimated versus audited class payroll at independently verified rate per 100 currency units, exact class rounding and explicit minimum premium; not governing-class selection, payroll legality or insurer audit judgment.

Description

Payroll premium audits compare estimated and observed class exposures under verified rates.

Payroll premium audits compare estimated and observed class exposures under verified rates. Class rounding precedes a separately applied total minimum.^[1]

The returned values include Caller estimated class premium minor, Caller audited class premium minor, Caller estimated total premium minor, Caller audited total premium minor, Signed audit premium adjustment minor. The How section below explains the calculation, input rules and interpretation.

When to use Premium Audit Payroll Exposure Adjustment Tool

Use Premium Audit Payroll Exposure Adjustment Tool when you need to evaluate the supplied records under the calculation and evidence rules below. No governing-class selection, payroll legality or insurer audit judgement is supplied.

Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.

How to use Premium Audit Payroll Exposure Adjustment Tool and understand its results

Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
Enter callerPayrollClassIds, observedEstimatedPayrollMinor, observedAuditedPayrollMinor, callerVerifiedPremiumMinorPer100CurrencyUnits, callerMinimumAuditPremiumMinor using the field table and calculation rules, then run the tool.
Read callerEstimatedClassPremiumMinor, callerAuditedClassPremiumMinor, callerEstimatedTotalPremiumMinor, callerAuditedTotalPremiumMinor, signedAuditPremiumAdjustmentMinor. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
callerPayrollClassIds	Caller payroll class ids	list of string	Required
observedEstimatedPayrollMinor	Observed estimated payroll minor	list of number	Required
observedAuditedPayrollMinor	Observed audited payroll minor	list of number	Required
callerVerifiedPremiumMinorPer100CurrencyUnits	Caller verified premium minor per100 currency units	list of number	Required
callerMinimumAuditPremiumMinor	Caller minimum audit premium minor	number	Required

Enter aligned nonempty unique nonblank class IDs and integer estimated payroll, audited payroll and rates, each 0–10¹², plus integer minimum premium 0–10¹². Round each class separately, apply the minimum independently to estimated and audited totals and return both class lists, both totals and audited-minus-estimated signed adjustment.

classPremium=roundMinor(payrollMinor×rateMinorPer100CurrencyUnits/10000); total=max(minimum,sum(classPremium))

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
callerEstimatedClassPremiumMinor	Caller estimated class premium minor	list of number
callerAuditedClassPremiumMinor	Caller audited class premium minor	list of number
callerEstimatedTotalPremiumMinor	Caller estimated total premium minor	number
callerAuditedTotalPremiumMinor	Caller audited total premium minor	number
signedAuditPremiumAdjustmentMinor	Signed audit premium adjustment minor	number

json

{
  "input": {
    "callerPayrollClassIds": [
      "a",
      "b"
    ],
    "observedEstimatedPayrollMinor": [
      100000,
      200000
    ],
    "observedAuditedPayrollMinor": [
      120000,
      150000
    ],
    "callerVerifiedPremiumMinorPer100CurrencyUnits": [
      200,
      400
    ],
    "callerMinimumAuditPremiumMinor": 1000
  },
  "output": {
    "callerEstimatedClassPremiumMinor": [
      2000,
      8000
    ],
    "callerAuditedClassPremiumMinor": [
      2400,
      6000
    ],
    "callerEstimatedTotalPremiumMinor": 10000,
    "callerAuditedTotalPremiumMinor": 8400,
    "signedAuditPremiumAdjustmentMinor": -1600
  }
}

Limitations and assumptions

No governing-class selection, payroll legality or insurer audit judgement is supplied.

Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries; string lists to 128 strings of at most 128 characters each. The rules above may impose smaller limits. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Quota Share Ceding Commission Net Retained Calculator: Quota-share allocation cedes the same stated fraction of premium and loss. Ceding commission applies to rounded ceded premium. For a complementary task, use Auto Premium Base Class Lookup: An auto base-class quote audit compares observed money with a verified class rate. Premium modifications belong to separate scenarios.

References

Premium Audit Payroll Exposure Adjustment Tool — tool.io

Similar or alternative tools

Quota Share Ceding Commission Net Retained Calculator
Quota-share allocation cedes the same stated fraction of premium and loss. Ceding commission applies to rounded ceded premium.
Auto Premium Base Class Lookup
An auto base-class quote audit compares observed money with a verified class rate. Premium modifications belong to separate scenarios.