California audit rules
The WCIRB's rules, officer limits, dual wage classes and disputes.
Learn more →Florida workers' comp audit
Workers' comp audits in Florida: NCCI rules, construction exemptions and disputes
Florida construction is strict: one employee means you need coverage, and only certain officers can opt out. Here is what the audit checks and how to dispute it.
Quick answer
In Florida, NCCI is the licensed rating organization that files rates and rules for workers' comp insurers with the Office of Insurance Regulation (OIR), and NCCI assigns the class codes. Exemptions, coverage checks and stop-work orders are handled by the Division of Workers' Compensation in the Department of Financial Services.
Construction employers must carry coverage with one or more employees, other employers with four or more. Up to three officers of a construction corporation or LLC, each owning at least 10%, can be exempt with a Certificate of Election to be Exempt. An exempt officer's pay is left out of the audit, but the exemption does not cover anyone else.
Under NCCI rules the premium part of overtime is excluded. If you disagree with the audit, ask the carrier or NCCI in writing to review it. If you are turned down, or get no answer in 30 days, you can file a written complaint with OIR.
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How Florida counts payroll and coverage at audit
From Florida Statutes chapter 440, the Division of Workers' Compensation and NCCI's Florida forms.
| Item | Florida rule | What to keep |
|---|---|---|
| Overtime | The premium part of overtime is excluded. Only the pay at the regular hourly rate counts | Payroll register with overtime premium in its own column |
| Exempt officers and LLC members | Their entire pay is excluded. In construction, at most three officers of a corporation or LLC (or affiliated group), each owning at least 10%, can be exempt | A copy of each officer's current Certificate of Election to be Exempt |
| Covered officers, sole proprietors, partners | Officer pay counts up to the maximum on Florida's state rate pages. Partners and sole proprietors are charged a set payroll amount from those pages | Names, titles, pay and ownership. Ask your agent for the current Florida figures |
| Who must be covered | Construction: one or more employees. Non-construction: four or more employees | Headcount by month, and your construction or non-construction status |
| Uninsured subcontractors (construction) | The contractor is liable for an uninsured subcontractor's workers, and their payroll can be added to your audit | Each subcontractor's certificate of insurance or certificate of exemption, checked in the state's Proof of Coverage database |
Florida-specific mistakes that raise the bill
- Hiring a subcontractor whose only paper is an officer exemption. The exemption covers the officer, not the sub's workers
- Letting a construction exemption lapse. Certificates are valid for 2 years and must be renewed
- More than three officers claiming exemption in one construction company or affiliated group
- Not checking each subcontractor in the Proof of Coverage database before work starts
- Reporting overtime as one gross amount, so the premium part cannot be excluded
- Ignoring a records request from the Division of Workers' Compensation. Not producing records within 21 days can bring a stop-work order, and missing coverage carries a penalty of 2 times the premium that should have been paid
Florida audit checklist
- Pull payroll by employee and class for the policy period, with overtime premium shown separately.
- Print each exempt officer's Certificate of Election to be Exempt and check the expiration date.
- Look up every subcontractor in the Proof of Coverage database and save a copy of their coverage or exemption for the dates of the work.
- For subcontractors with only an officer exemption, confirm whether they had workers on your job and whether those workers were covered.
- List every covered officer, partner or sole proprietor with pay, and ask your agent for the current Florida officer limits.
- Check the final audit results line by line, and pay the undisputed part on time.
How a Florida audit dispute works
From Florida Statutes section 627.371 and NCCI's dispute resolution process.
- Try to resolve it with your carrier first. NCCI's process asks you to pay all undisputed premium and give the carrier a written estimate and explanation of the premium in dispute.
- Make a written request to the carrier or to NCCI to review the rating, class code or rule applied. If it is not granted within 30 days, you may treat it as rejected.
- For disputes about class codes, payroll allocation or the experience mod, NCCI's dispute resolution process can take the case, and may refer it to an appeals board.
- If your request is refused, you can file a written complaint with the Florida Office of Insurance Regulation.
Keep reading
New Jersey audit rules
CRIB rules, tips as payroll, officer limits and appeals.
Learn more →New York audit rules
NYCIRB rules, officer limits, the construction cap and appeals.
Learn more →Pennsylvania audit rules
PCRB rules, full overtime, officer exclusions and appeals.
Learn more →Texas audit rules
NCCI rules with Texas codes, non-subscribers and disputes.
Learn more →Payroll reconciliation template
A free template that lines up the payroll register, Form 941s, and workers' comp payroll by quarter.
Learn more →Frequently asked questions
Who needs workers' comp in Florida?
Construction employers with one or more employees, and non-construction employers with four or more employees.
Who can get a Florida construction exemption?
Up to three officers of a construction corporation or LLC, or of a group of affiliated companies, who each own at least 10%. They apply online with the Division of Workers' Compensation, pay a $50 fee, and the certificate is valid for 2 years.
Does an officer exemption cover my subcontractor's workers?
No. The exemption only means that officer is not counted as an employee. It is not insurance. If the subcontractor had workers on your job and no coverage, you can be liable for them and their payroll can be added to your audit.
Is overtime included in Florida workers' comp payroll?
Under the NCCI rules used in Florida, the premium part of overtime is excluded, so only pay at the regular hourly rate counts. Keep the overtime premium in its own column so the auditor can apply this.
What happens if I understate payroll in Florida?
The Division can issue a stop-work order and a penalty of 2 times the premium that should have been paid, and knowingly misrepresenting payroll or worker classification is a crime under Florida law.
How do I dispute a Florida workers' comp audit?
Start with your carrier and pay the undisputed premium. Ask the carrier or NCCI in writing to review it. If you are refused, or hear nothing in 30 days, you can file a written complaint with the Office of Insurance Regulation.
Sources
Official rating bureau and state agency pages this guide is based on.
- Florida DFS, Division of Workers' Compensation: Construction exemptions
- Florida DFS, Division of Workers' Compensation: Coverage requirements
- Florida DFS, Division of Workers' Compensation: Employer FAQ
- Florida DFS: Proof of Coverage database
- Florida Statutes s. 440.02, definitions and exemptions
- Florida Statutes s. 440.10, contractor liability for subcontractors
- Florida Statutes s. 440.107, stop-work orders and penalties
- Florida Statutes s. 627.371, review of rating decisions
- NCCI: Florida contracting classification premium credit form
- NCCI: Dispute resolution process
Important scope note
Practical prep guidance only.
This page summarizes Florida rules published by the Department of Financial Services, the Florida Legislature and NCCI for audit prep. It is not legal, tax or insurance advice, it is not a ruling on your policy, and your policy and your carrier's audit are the final word.
Get your Florida records in order before the audit
Start with the free checklist, check the likely bill with the estimator, or use the workbook to keep payroll, exemption certificates and subcontractor COIs in one file.