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socrateaser, Lawyer
Category: Legal
Satisfied Customers: 37864
Experience:  Retired (mostly)
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I am having a premium audit done for my workers comp insurance,

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I am having a premium audit done for my workers comp insurance, but I have used subcontractors. The insurance was based on employees but I was in a bind and needed to get the contracts completed. I paid the insurance quarterly on an average of 20000.00 payroll. Is this going to cause a large increase in my premium

Per the TX Workers Compensation Manual, insured subcontractors are to be classified on the basis of the classification describing the particular type of work performed. Uninsured contractors whose payroll is picked up under the principal contractor's policy are to be classified as if the work were performed by the principal's own employees.

In other words, if your subs carried their own insurance, then your insurance will not increase. Otherwise, your payroll will be treated as if you have all of the subs as your employees, and your premium will be negatively affected.

Please let me know if I can be of further assistance.
Customer: replied 3 years ago.
I understand that. My premium was based on 80,000 worth of payroll, the total paid out to all subs is just over 70,000. Is there an increase in cost for the use of subs vs. employees
No. the rates are the same for each.

Hope this helps.
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