Thanks rfassett, your response was my original thought and as you said, I began to overthink it. This guy is normally very good and I do all of his WC audits and neither of us had any idea this would have been overpaid. The audit always takes place in June, he received this check in February.
ILLMAS, I would love to see someone's prepaid insurance worksheet. This client's WC premiums are for three employees in an auto repair shop at a direct expense of 100% so no real involved calcs. However, I have another client who tracks their own WC insurance and I know they screw it up every time in their QB and I have to fix it. Thanks!