Each year, SC Municipal Insurance Trust members undergo a payroll audit handled by Research Technical Services. The payroll audit serves to properly classify and account for payroll expenses to employees and laborers working for the municipality or entity. The audit verifies that there is an accurate count of employees and their payroll for each member.
If there is a difference in the estimated and audited payroll for the member, SCMIT issues either an invoice or refund.
The total payroll is also important for SCMIT to secure workers' compensation reinsurance coverage. The estimated and audited payrolls must be provided to the reinsurer each year.
How to prepare for the payroll audit:
- Review the 2022 payroll audit booklet prepared by RTS upon receiving it.
- Determine the true gross payroll before the auditor's arrival, and be able to provide documentation to the auditor.
- Have certificates of insurance on file for subcontractors. These verify that the subcontractor was insured prior to starting work. The certificate of insurance cannot be provided after the auditor leaves the premises.
- Track hours worked by inmates and be able to provide documentation. If the hours are not tracked, a predetermined formula will calculate the payroll.
- Schedule the audit earlier if more time is needed to review it.
The auditing team at RTS will contact SCMIT members in early January to set up a time to conduct the audit. The earlier the audit takes place, the longer the member has to review their audit for accuracy.
The audit provided by RTS includes a copy of the auditor's summary and payroll breakdown by job classification, as well as how the amounts used to compute payroll have been derived.
In 2023, the payroll audits will begin in January and end in March. An email with additional information will go out in December to the SCMIT payroll audit contacts.
For questions about the payroll audit, contact Robert Collins, underwriting manager at 803.933.1279 or rcollins@masc.sc; Chassidy Sistrunk, senior underwriter at 803.354.4755 or csistrunk@masc.sc; or Sharon Turner, underwriter at 803.354.4757 or sturner@masc.sc.