Understanding Workers’ Compensation Audits: Navigating the Uniform Statistical Reporting Plan in California

19 August 2025

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Navigating workers’ compensation audits in California, especially concerning the Uniform Statistical Reporting Plan (USRP), can be intricate. Over the years, many policyholders have found it challenging to comprehend which compensations should be included in the remuneration for workers’ compensation premiums. The following is a concise guide to assist you in preparing for your upcoming audit.


What is the Uniform Statistical Reporting Plan?


The USRP is a set of guidelines established by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB). It outlines how policyholders should report payroll and other compensations to ensure accurate Workers’ Compensation premiums.


What compensation to include as payroll?


The following are typically included as payroll under the USRP:


  • Wages and Salaries: Regular and overtime pay.
  • Bonuses and Commissions: All additional earnings.
  • Paid Time Off: Vacation, sick leave, and holiday pay.
  • Allowances: Value of meals, lodging, and other allowances.
  • Piecework and Shift Differentials: Extra pay for shifts and piece-rate work.


Tips for a Smooth Audit


  1. Maintain Accurate Records: Keep detailed payroll records, including all forms of compensation.
  2. Classify Employees Correctly: Ensure employees are correctly classified according to their job duties.
  3. Review USRP Guidelines: Familiarize yourself with the latest guidelines to avoid common pitfalls.
  4. Consult a Professional: If in doubt, seek advice from an insurance or audit professional.


Interested in a Better Experience?


Ready to partner with an agency that keeps clients informed and updated?


Fill out the form below to connect with our team and explore solutions for your insurance program.


In exchange, we’ll provide you with a customized document from our agency summarizing wages subject to Workers’ Compensation premiums in California. This document will save you hours compared to navigating the 384-page USRP!


We look forward to connecting with you soon!

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By: Michael Fusco

CEO & Principal of Fusco Orsini & Associates

(858) 384‑1506

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