Sm Bus. work comp ins. audit bill for $18,165. Reviewed and credited $18,060. Paid $105. bal. stating final payment, New inv. for $18,060. R we liable
Question Details: Year end work comp ins. audit. Billed $18,165.00 we disputed it, seeing outside salesmen with company vehicles, not true. They reviewed it and sent a inv. w/ credit of $18,060 we paid the balance of $105.00 and put final payment o balance for acct.#---- on check. Now they are inv. us $18,060.00 and say they will turn us over to collections and we will not be able to get work comp ins from any ins company. Is this true and are we liable?
I'm not sure what the story is, here. If the first bill after the audit was a mistake, billing you $105.00 when it should have been for $18,060.00, you can't take advantage of that, you have to pay what's actually due, although I'd think that the second bill should have at least reflected the $105.00 you did pay. In many states, simply putting "final payment on account # ____" isn't enough to stop them from billing you for the balance -- and they might not have deposited the check because you did that, which would explain why the payment isn't on the new bill.
In many states, it's true that if you don't pay a previous year's premium for workers compensation coverage, you can't get continued coverage. I'm not a Colorado lawyer, but this would not surprise me if it's true in your state.
If you have any employees, workers compensation is mandatory. You should discuss this with your business lawyer as soon as possible. If you need to find a qualified attorney, one place you can look is our website, http://attorneypages.com