Your MEM e-Audit: What to Expect 

Your workers compensation policy requires an annual audit to make sure your premium accurately reflects your payroll and operations. MEM offers an e-Audit option that lets you complete this requirement online at your own pace, without scheduling an on-site visit or virtual meeting. 

Bruce Besta, Premium Consultation Supervisor at MEM, explains how the e-Audit process works and what policyholders need to know to complete it successfully. 

How the e-Audit process works 

Here’s what to expect from the e-Audit process. 

Who’s eligible for e-Audit 

Any MEM policyholder may be audited upon policy expiration. MEM determines whether your audit will use the e-Audit system or require a virtual audit with a Premium Consultation auditor based on your policy’s specific circumstances. 

📍 Read next: Your MEM Audit: Understanding the Two Formats > 

Getting started with your e-Audit 

You’ll receive an email containing a letter with your unique PIN number, sign-in credentials, and login information for the e-Audit system. This gives you access to enter all required data electronically whenever it’s convenient for you. 

“One of the key advantages of doing an e-Audit is the ability to do it all electronically at your leisure,” Besta said. “You’re able to plan, as well as gather all of the information needed during the process.” 

This flexibility means you can work through the e-Audit in multiple sessions if needed, gathering documents and verifying information as you go rather than trying to complete everything in one sitting. 

Information to prepare 

The e-Audit system includes several data fields you’ll need to complete with information about your business operations over the policy period: 

• Description of operations: Details about what your business does and how your work is structured 
• Officer information: Names, titles, and compensation details for company officers 
• Gross payroll and verification: Total payroll figures with supporting documentation 
• Subcontractor information: Details about any subcontractors you’ve used, if applicable 

⏬ Download: Audit Preparation Checklist > 

Important timeline and deadlines 

 The timeframe for your e-Audit begins 60 days from your policy expiration date. This 60-day period is your window to complete and submit all required information through the e-Audit system. 

MEM sends multiple reminders to help you stay on track: 

• After 30 days: If you haven’t started or completed your e-Audit, you’ll receive a second request 
• After 40 days: A final request goes out as you approach the deadline 

These reminders help you avoid missing the deadline, which can have significant consequences for your policy. 

What happens if you miss the deadline 

If you don’t submit your information within the 60-day window, you could face an Audit Noncompliance Charge. Commonly referred to as a non-compliance charge, an ANC charge can be up to double your estimated annual premium. 

Missing the e-Audit deadline isn’t just an administrative issue. It can impact your costs, so it’s worth treating those reminder emails seriously and starting the process early. 

After you submit your e-Audit 

Clicking “submit” doesn’t mean the process is over. Once you’ve completed and submitted your e-Audit, the file moves to MEM’s Premium Consultation team for review. 

A Premium Consultation auditor examines your submission to verify accuracy, ensure all fields contain proper data, and confirm the overall accuracy of the audit. This review process protects both you and MEM by catching any errors or inconsistencies before they affect your premium calculation. 

Ready to start your e-Audit? Our detailed instruction guide takes you through the process step by step: How to Complete an e-Audit > 

Why the e-Audit matters 

The audit process serves a critical function in the work comp system. It ensures your premium accurately reflects your actual exposure, which keeps the system fair for all policyholders. 

“An e-Audit is an important piece of the entire insurance agreement,” Besta explained. “It helps determine that proper classifications are being used to ensure that proper premiums are in place, and exposures reflect that as well.” 

The e-Audit helps verify that: 

• Your employees are classified correctly for premium calculation purposes 
• Your payroll figures accurately reflect what you paid during the policy period 
• Your exposure matches your actual operations 

Since your work comp premium calculation is partially based on payroll, it’s easy to see why accurate audit information is so important. 

4 tips for a smooth e-Audit experience 

Make your e-Audit as smooth as possible by following these best practices: 

1. Start early. Begin as soon as you receive your login credentials rather than waiting until the deadline approaches. This gives you time to track down any missing information. 
2. Gather documents first. Collect all necessary payroll records, officer compensation details, and subcontractor documentation before you start entering data. You’ll save time and reduce errors. 
3. Double-check your entries. Review all information for accuracy before submitting. Simple typos in payroll figures or employee classifications can cause issues down the line. 
4. Ask questions. If you’re unsure about any data field or how to categorize information, contact your Premium Consultant. They’d rather answer questions upfront than correct errors later. 

Have questions about your e-Audit? Contact your Premium Consultant or premiumconsult@mem-ins.com. 

Frequently asked questions: e-Audit