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Billing & Invoicing

Configure how you collect premiums and manage payments. From billing models to ACH settlement.

Advanced 10 min read For Carriers

What you'll learn

  1. Billing models overview
  2. Configure carrier billing
  3. Premium collection flow
  4. Invoice generation
  5. ACH settlement

Before you start

1

Billing Models Overview

Three billing models to match how your carrier charges.

The platform supports three billing models, configurable per carrier:

  • Cycle-Based — employer pays a fee per payroll cycle. Best for PAY GO policies where premiums are collected each pay period.
  • Flat Fee — carrier pays a fixed monthly fee to the platform. Simple and predictable for carriers with high volume.
  • Percentage — carrier pays a percentage of collected premiums. Scales with your book of business.
Default fallback. Every carrier has a "default" billing configuration. Specific policies can override this with custom billing terms.
2

Configure Carrier Billing

Set up your billing model and fee structure.

Navigate to Settings → Billing in the admin configuration (managed by Audit1 staff). The billing configuration includes:

  • Fee Type — cycle_based, flat, or percentage
  • Fee Amount — dollar amount (flat/cycle) or percentage (0.05 = 5%)
  • Billing Frequency — monthly, per-cycle, or custom
  • Setup Fee — one-time fee for new policies (optional)

These settings live in the Carrier Billing Capabilities configuration and apply to all policies under your carrier unless overridden.

3

Premium Collection Flow

How premiums move from employer to carrier.

The premium collection pipeline:

  1. Payroll file received — employer or payroll company submits data
  2. Phase 3 calculates premium — net rates applied to auditable wages
  3. Debit initiated — ACH debit queued from employer's bank account
  4. Settlement — funds collected and credited to carrier wallet

The entire flow is automated. Premiums are calculated to the penny using the policy's net rates and the employee's auditable wages after all WC exclusions and caps.

Penny-level precision. All monetary values are stored as integer cents internally. A premium of $1,234.56 is stored as 123456 cents. This eliminates floating-point rounding errors.
4

Invoice Generation

Track and manage invoices from your carrier dashboard.

Invoices are generated automatically based on your billing configuration. From your Wallet page, you can view:

  • Outstanding invoices — pending premium collections
  • Processed invoices — completed ACH transactions
  • Failed/Returned — ACH failures (insufficient funds, closed accounts)
  • Totals — aggregate premium by period, policy, or employer

Each invoice links back to the source payroll file and includes a breakdown by class code and state.

5

ACH Settlement

How funds are transferred and when to expect settlement.

ACH transactions follow standard banking timelines:

  • Debit initiated — immediately after premium calculation
  • Pending — 1-2 business days for ACH processing
  • Settled — funds available in carrier wallet (2-5 business days total)

Failed debits (insufficient funds, invalid account) are retried automatically. After 3 failures, the invoice is marked as "Failed" and the employer is notified.

Automated end-to-end. From payroll file to carrier settlement, the entire billing pipeline runs without manual intervention. Monitor everything from your Carrier Portal dashboard.

Continue learning

Previous White-Label Portal Setup Customize the employer portal with your carrier branding. Related Policy Management & Renewals Create policies and manage the full lifecycle.