In the context of a self-insured employer, which scenario describes not paying an audit fee?

• A. The employer always pays the audit fee
• B. The employer never pays any audit fee
• C. The employer is not responsible for routine in-state audits
• D. The employer pays only for out-of-state audit fees

Answer: (C)

In self-insured employers, routine audits conducted within the state are typically covered by the regulatory program and are not billed to the employer. The employer’s responsibility for audit fees mainly comes into play for non-routine audits or audits conducted outside the state. So the description that the employer is not responsible for routine in-state audits matches the idea that standard state audits are not charged to the employer.

Why this is the best fit: it directly aligns with the concept that routine in-state regulatory audits are considered part of the state oversight and not a cost passed to the employer.

The other scenarios imply some payment for routine audits or for audits outside the routine scope, which does not describe not paying an audit fee for routine in-state audits.