Everything you need to know about Audit Noncompliance Charges.
An Audit Noncompliance Charge (ANC) applies when a workers’ comp insurance premium audit isn’t completed on time. You can avoid or remove it by completing your audit. This page explains what the charge is, why audits are required, how much an ANC can be, and how to resolve it.
An Audit Noncompliance Charge (ANC) is an industry-standard charge applied when a business owner doesn’t complete their required workers’ comp premium audit within the designated timeframe. Pie applies the charge in line with state regulations and rating agency requirements. Completing your audit is how you avoid or remove it.
State regulations require a premium audit after your workers’ comp policy ends or is canceled. Your premium was based on estimated payroll, employees' job duties, and your business's class codes. The audit compares that estimate with your actuals so your final premium is accurate. Depending on the results, you may owe additional premium or receive a refund.
ANC amounts are set by state regulations and rating agency requirements. Most states allow charges of up to two times your estimated annual premium. Pie applies the charge your state requires, which can be significantly higher than any additional premium you’d owe after completing your audit. Because of that difference, completing your audit is the most direct way to keep your costs down.
The only way to avoid or remove an ANC is to complete your required premium audit. If you complete it before the charge is billed, Pie won’t bill the ANC. If you complete it after, Pie removes the charge and bills any premium due based on the completed audit.
If you fully comply with your audit requirements during the 30-day payment notice period, Pie won’t charge the ANC to the payment method on file.
If you complete your audit, Pie will remove the ANC and bill any premium due based on the completed audit. Depending on the premium audit outcome, there may be a refund.
Whether you’ve just received an audit notice or have already been charged, completing your premium audit is the next step toward resolving it.
Information on completing your audit will be sent to the email associated with your account. Learn more about the audit process on our workers’ comp premium audit page. Check out our premium audit checklist for details on the documentation needed to complete your audit.
