OAR 836-043-0135: Test Audits

(1) An analysis of test audit results shall be completed on each test audit. (2) The test auditor shall interview the insured or an authorized representative of the insured in order to solicit the insured's cooperation and also to obtain all factual data necessary for proper completion of the test audit. (3) If a current inspection is in the file, the test auditor shall verify data contained in that report. (4) Each test audit may be performed on site or as a virtual audit and shall contain the following: (a) A reconciliation of payroll subject to premium charge, which must be made with the independent control records of the State Unemployment Insurance quarterly reports and FICA quarterly report; (b) A review of the cash disbursements journal to develop the remuneration paid to contract labor and casual labor; (c) A detailed review of at least one pay period to verify proper classification; (d) A review of time cards to verify proper treatment of overtime remuneration; (e) A review of original entry records to verify proper application of the "division of single employee's payroll" rules (OAR 836-042-0050 to 836-042-0060); (f) A list of the name, duties, and earnings of all persons assigned to the "standard exceptions" classifications. When size of the risk makes the listing impractical, spot checks must be made; (g) A list of the name, title, duties, and earnings of all covered executive officers, partners or individuals; (h) A summary, by classification, of all chargeable payrolls; (i) A summary of the differences between the test audit and the insurer audit. (5) Examples of the templates and forms described in this rule are located on the Department of Consumer and Business Services, Division of Financial Regulation website at dfr.oregon.gov.