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Construction companies across Pennsylvania often overpay workers’ compensation premiums without realizing it. Between payroll misclassification, incorrect construction class codes, clerical wages being rated improperly, and missed construction credits, many PA contractors leave significant money on the table each year. A properly executed Pennsylvania construction workers’ comp audit can uncover these errors and result in meaningful premium refunds or reductions. This checklist is designed to help Pennsylvania construction companies identify the most common audit issues and understand where savings opportunities typically exist before, during, and after a workers’ compensation audit.
Use the checklist below to identify the most common workers’ compensation audit issues that lead to refunds and premium reductions for Pennsylvania construction companies.
Confirm that each employee is assigned to the correct construction class code based on actual job duties performed. In Pennsylvania, misclassified labor is one of the most frequent causes of workers’ comp overpayments, especially when employees perform multiple tasks across job sites.
Office and administrative employees should be classified separately from field labor when they meet the requirements for clerical classifications. Improperly including clerical payroll under construction codes can significantly inflate workers’ comp premiums.
Ensure that all subcontractors used during the policy period provided valid certificates of insurance. Missing or incomplete certificates often result in subcontractor payroll being incorrectly added to a contractor’s workers’ comp exposure.
Compare payroll reports, tax filings, and internal wage records against the figures used during the workers’ comp audit. Even small discrepancies in reported payroll can create sizable premium adjustments.
Overtime pay premiums are often misapplied during audits. Confirm that only the appropriate portion of overtime wages was included in workers’ comp calculations and that payroll was allocated correctly between job classifications.
Many Pennsylvania construction companies qualify for construction credits but never receive them. Verify whether applicable credits were applied properly during the policy audit process.
The final audit statement should be reviewed line by line for errors in class codes, payroll totals, and applied rates. Mistakes at this stage often go unnoticed but can materially impact the final premium.
Workers’ compensation premiums for construction companies in Pennsylvania are often higher than they should be due to a combination of classification errors, audit inconsistencies, and overlooked credits. Because construction operations frequently involve multiple job roles, job sites, and subcontractors, even small reporting mistakes can lead to significant premium overpayments.
One of the most common issues is the misclassification of employees under incorrect construction class codes. When payroll is assigned to higher-risk codes than warranted by actual job duties, premiums increase unnecessarily. Clerical payroll is also frequently included in construction classifications despite qualifying for separate treatment, further inflating costs.
Subcontractor exposure is another major factor. Missing or incomplete certificates of insurance often cause carriers to include subcontractor payroll in the audit, even when those subcontractors carried their own coverage. Additionally, overtime pay and payroll allocations are commonly mishandled, resulting in wages being overstated during the audit process.
Finally, many Pennsylvania construction companies qualify for construction credits or favorable rating considerations that are never applied. Without a detailed review of the policy, payroll records, and final audit worksheets, these overpayments often go unnoticed year after year.
If you’re a Pennsylvania construction company, you may be overpaying your workers’ compensation premiums without realizing it. Our construction-focused audit process reviews your policy, payroll, and audit documentation to identify errors, missed credits, and overcharges that commonly lead to refunds or premium reductions.
There is no upfront cost and no obligation. If we don’t find savings, you don’t pay. Most Pennsylvania contractors we review see recovery opportunities ranging from 15–20% of their annual workers’ comp premium.
👉 Start your free Pennsylvania construction workers’ comp audit today and find out if your company is entitled to a refund.