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How do I read my bill?

There are several types of bills you could get from State Fund, however they all have common features explained below:

    Bill sample

  1. If you need to update your address, use the empty box at the lower right to write in changes. Note: The address should reflect the employer’s address, not the bookkeeper address. If you would like to add the bookkeeper’s address to your policy, call the State Fund Customer Service Center at 888-STATEFUND (888-782-8338).
  2. Bill sample

  3. Source of payroll used to calculate premium
    • Payroll reported from payroll reports
    • Payroll audited by a State Fund Auditor
    • Payroll estimated due to un-reported payroll or non-compliance of audit
  4. Class code = A code indicating the classification of the work done by your employees. If you have more than one classification on your policy, each one will appear here.
  5. Payroll Reported = The amount of payroll reported to State Fund for each class. This payroll figure is multiplied by the base rate and divided by 100 for each classification to calculate the base premium for that class. (If you are receiving a Final Audit Statement, this payroll figure is not used to calculate your final premium, see Payroll Audited).
  6. Payroll Audited = If you are receiving a Final Audit Statement, you will see this column in addition to the Payroll Reported. This payroll figure is used to calculate your policy premium. It is multiplied by the base rate and divided by 100 for each classification to calculate the base premium for that class (Note that some audited policies will not include a Reported Payroll column).
  7. Base Rate = State Fund’s base insurance rate for the class as filed with the California Department of Insurance. This is the rate State Fund charges per $100 of payroll by each classification.
  8. Your reported or audited payroll multiplied by the base rate and divided by 100 determines the Base Premium for each class.
  9. The base premium subtotal is the sum of base premium for each classification. Your premium may be adjusted by several modifiers. If your policy is eligible for an experience modification – a modifier based on your loss history – it will show.  Your policy’s Rating Plan Modifier and the Premium Discount Modifier may also increase or decrease your premium. The result will be the Total Premium for your policy.
  10. Minimum Premium =  This is the least amount of premium charged for the policy term.  If you have no Reported Payroll or Audited Payroll, or these payroll amounts result in total premium less than the Minimum Premium, then the premium charged will be this amount.
  11. Mandatory Insurance Surcharges = State-mandated surcharges are assessed on your total premium to provide funding for various insurance and employment-related programs.
  12. Below are what the surcharge abbreviations stand for.

    CIGA = California Insurance Guarantee Association
    SIBT = Subsequent Injuries Benefits Trust Fund
    UEBT = Uninsured Employers Benefits Trust Fund
    WCA = Workers’ Compensation Revolving Fund
    WCFA = Workers’ Compensation Fraud Assessment Fund
    OSHF = Occupational Safety & Health Fund
    LEC = Labor Enforcement and Compliance Fund

  13. Total Charges = The total cost of the policy for the specific policy term indicated.
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  15. This section reflects the total of the premium and surcharge payments made for the policy term. The section may also reflect credit for your premium deposit if it has not been applied to the next policy term.
  16. The difference between your Total Charges and Total Payments & Credits. If you have a payment due, the amount and due date will be shown. This may also reflect a credit amount or no amount due.


Glossary of Terms

Base Premium: Payroll (x) the base rate for each classification on your policy (divided by 100). Total Base Premium is the sum of each base premium calculation.
Classification Code Number: A statistical code used to categorize the type of work done by your employees.
Coverage Period (Policy Period): The effective dates of the policy. The beginning date is called the inception date and the ending date is called the expiration date.
Deposit: Payment required to validate a workers’ compensation insurance policy. All policies are required to have a deposit payment.
Endorsement: An amendment, change, deletion, or addition to the policy contract.
Standard Premium: Total Payrolls (x) base rates (divided by 100) (x) Experience Modification (if applicable).
Modified Premium: Total Payrolls (x) base rates (divided by 100) (x) Experience Modification (x) Rating Plan Modifier.
Rating Plan Modifier: The product of all Rating Factors applicable to your policy, excluding the Experience Modification and Premium Discount Modifier.
Total Premium: Total Payrolls (x) base rates (divided by 100) (x) Experience Modification (x) Rating Plan Modifier (x) Premium Discount Modifier.
Premium Discount Modifier: A credit given to accounts based on their individual premium size. Discounts apply to modified premium amounts over $5,000.
Mandatory Insurance Surcharges: These are fixed percentages applied to your premium and are subject to changes by regulatory agencies and legislation. All workers’ compensation insurance carriers are required by law to apply these surcharges to total premium.
Minimum Premium: The minimum sum for which the carrier will ensure the employer. It is not subject to proration or refund. Your premium will never be less than the minimum premium even if the policy is cancelled during the policy period.
Payroll reported: The amount of payroll reported to State Fund by the policyholder via periodic payroll reports.

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