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Payroll Reporting FAQs

Completing Payroll Reports

  1. How do I calculate payroll premium and complete my payroll report?
  2. My policy is on stipulated billing. Will I still need to complete payroll reports?
  3. What is a Split Payroll Report?
  4. How do I calculate overtime on my payroll report?
  5. I am completing my payroll report, but need an additional classification. What do I do?
  6. How do I report covered officers?
  7. I’ve lost or misplaced my payroll report. How can I obtain another one?
  8. I made a mistake on my payroll report. How do I correct it?
  9. Do I need to send in a payroll report if I have no payroll?
  10. Should I keep a photocopy of my payroll report for my own records?
  11. Submitting Payroll Reports

  12. How do I submit my payroll report?
  13. Do I sign all the pages of my payroll report?
  14. Where do I send my payroll report if my policy is in jeopardy of being canceled soon?
  15. How can I verify State Fund received and posted my payroll report?

    Completing Payroll Reports

  1. How do I calculate payroll premium and complete my payroll report?

    You do not need to calculate payroll premium if your policy is on a stipulated billing cycle.

    Sample Payroll Report


    However, if your policy is not yet on a stipulated billing cycle, this is typically what you will see when we send you a payroll report.

    Payroll report sample

    1. Class Codes are the numeric coding systems to assign job duties.
    2. A description of work performed spells out what the class codes reference.
    3. Interim rate is amount that you are being charged per one hundred dollars, including discounts (if applicable). We determine the interim rate on your payroll reports by multiplying the base rate by any discounts (such as group, merit rating and premium discount factor) for which you are qualified.
    4. An experience modification (ex-mod) is a premium modifier calculated by the Workers' Compensation Insurance Rating Bureau. Experience rating allows an employer’s premium to reflect their own claims experience compared to the average loss experience of other California employers in the same industry. There are a number of variables that influence whether an ex-mod is higher or lower than 100%. For more information, please visit the WCIRB website at https://wcirbonline.org/wcirb/Employer_guide/experience_modification.html

    Calculating payroll

    Payroll report sample

    To calculate payroll:


    1. First enter your total gross payroll (total employee wages before taxes and other deductions) for the reporting period in the third column, on the line for the appropriate class code.
    2. To calculate the premium due, multiply the total gross payroll [A] by the interim rate listed in the 4th column, then divide by 100 and enter on the appropriate line in the PREMIUM column.
    3. Add the figures in the PREMIUM column [B] to find your gross premium.
    4. Finally, multiply the gross premium by your Experience Modification (Ex-Mod) percentage to determine the total premium due.
    5. State Fund must receive your payroll report and payment by the date shown.

    • If you do not have any payroll for the reporting period it is crucial that you complete the report by writing the word “None” on EACH page of the report, sign, date and return to State Fund in the envelope provided.
    • Please be sure to sign and date ALL pages of the report at the bottom.
    • There is no need to include your payroll records (we will request them at the end of the year audit if needed).
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  3. My policy is on stipulated billing. Will I still need to complete payroll reports?

    If your policy is on stipulated billing, you will still need to complete semi-annual payroll reports; however you will not have to calculate premium on those reports.

  4. What is a Split Payroll Report?

    A split payroll report is sent when there is an Anniversary Rating Date on your policy, which is the month and day that rates, rating plans and rating systems are initially applied to a policy in force and each annual anniversary thereafter. Your payroll will need to be annotated for each period specified.

    Sample Split Payroll Report


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  6. How do I calculate overtime on my payroll report?

    Example:

    Total Hours = 40
    Overtime Hours = 8
    Rate of Pay = $6.00
    Overtime Rate = $6.00 x 1 ½ = $9.00 per hour

    40 regular hours worked x $6.00 per hour = $240.00
    + 8 overtime hours worked x $9.00 per hour = $72.00
    Total Payroll (240.00 + $72.00) = $312.00 total payroll

    For overtime work, premium is not paid on the portion that is in excess of the regular wage rate. For “time and a half” rates, as in this example, to easily figure out the overtime excess portion take the total overtime portion of $72.00 and divide by 3. This is the exempt amount. Deduct the exempt amount from the total payroll to obtain the amount for which premium will be charged.

    Example: $72.00 ÷ 3 = $24.00 overtime excess
    $312.00 total payroll minus $24.00 overtime excess = $288.00 on which premium is charge.

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  8. I am completing my payroll report, but need an additional classification. What do I do?

    We will need a complete employee job description before we add the classification to the policy. Please do not report payroll in the new classification until it has been reviewed and endorsed to your policy.

    When business partners, executive officers or directors are covered under the policy, coverage will be written at the governing or higher-rated classification applicable to the specific job duties of the supervised employees. Partners and corporate officers are subject to minimum/maximum wage limitations per the Workers’ Compensation Insurance Rating Bureau (WCIRB). Directors are subject to actual remuneration.

    Job Duties Questionnaire


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  10. How do I report covered officers?

    Officers and partners are covered for benefits unless specifically excluded by endorsement. You should report payroll for each covered officer or partner, subject to “minimum and maximum remuneration per annum,” which is the lowest and highest payroll amount we can use to calculate premium for officer coverage. The California Workers’ Compensation Insurance Rating Bureau (WCIRB) establishes annual minimum and maximum amounts for California insurance carriers to apply when charging premium for covered officers. For policies initiating or renewing in 2011, the minimum is $39,000 and maximum is $101,400.  This means, for example, that if an officer earned $30,000 for the 2011 policy year, we must base the premium on $39,000. Likewise, if an officer earns $110,000 for the 2011 policy year, we must base the premium for that officer’s coverage on $101,400. We base premium on actual wages for earnings falling between the minimum and maximum amounts. Please note, for policies initiating or renewing in the 2012 policy year, the minimum is $40,300 and maximum is $104,000.

    Payroll report sample

    1. The name of the officer/partner.
    2. The title of the officer/partner.
    3. A description of their job duties.
    4. Their class code.
    5. Total gross officer/partner payroll.
    6. Indicate “YES” or “NO” if the payroll reported in column E is also reported at the top of the report.
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  12. I’ve lost or misplaced my payroll report. How can I obtain another one?

    There are a couple of ways to replace your report. You can register for State Fund Online and enroll in the e-payroll and e-payments programs to report your payroll and submit the payment online. However, you will not be able to print out a duplicate report. You can also call the Customer Service Center at 888-STATEFUND (888-782-8338) to request a new report. We can e-mail, fax, or mail you the new report for your convenience.

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  14. I made a mistake on my payroll report. How do I correct it?

    You would need to revise your report. If you made a mistake filling it out online, you can call 1-888- STATE FUND, but only by 1:00 p.m. on the same business day that you submitted your payroll. If you have a copy of the already-submitted report you can re-submit it with the changes. It is imperative that you re-sign, re-date, and write "Revised" on the report, so we can verify when the changes were made.

    If you do not have a copy of the previously-submitted report, you can contact the Customer Service Center at 888-STATEFUND (888-782-8338). We can mail, fax, or email you the report.  Once you make all the corrections, fax the report to (925) 416-3361, or mail it to:
    State Compensation Insurance Fund
    P.O. Box 7441
    San Francisco, CA 94120-7441

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  16. Do I need to send in a payroll report if I have no payroll?

    Yes, you need to send in a report to notify us that you had no payroll. If you have access to your policy in State Fund Online, you may log into you account to report payroll and make a payment using one a credit card. If you are submitting your report through the mail, simply write “none” on all pages and sign and date them before mailing it to us.

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  18. Should I keep a photocopy of my payroll report for my own records?

    We recommend you keep a copy of your previous payroll reports and payroll records for at least seven years, as you would your tax records.

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    Submitting Payroll Reports

  20. How do I submit my payroll report?

    There are three different ways to submit your payroll reports.

        1. You can submit them electronically by enrolling in State Fund Online. State Fund Online has many benefits including allowing you to submit all your payroll reports and premium payments electronically. Visit State Fund Online or call 888-STATEFUND (888-782-8338).
        2. You can also submit your payroll report online by clicking on the Make a Payment/Report Payroll link on statefundca,com.
        3. The third alternative is to return your report and payment in the envelope enclosed with the report form. If you have misplaced the envelope, you can mail your report to:

          State Compensation Insurance Fund
          P.O. Box 7441
          San Francisco, CA 94120-7441

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      1. Do I sign all the pages of my payroll report?

        Yes, to verify that you are certifying that each page of your report is accurate; all pages need to be signed, dated, and submitted, even if you don’t have payroll on those pages.

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      3. Where do I send my payroll report if my policy is in jeopardy of being canceled soon?

        You may use your Visa, MasterCard, or American Express credit or debit card to submit your outstanding payroll report(s) and premium to avoid cancellation of your policy in 1 of 3 ways:

          1. If you have access to your policy in State Fund Online, you may log into you account to report payroll and make a payment using one of the cards mentioned above.
          2. You can submit your outstanding payroll report(s) and premium by clicking on the Make a Payment link on statefundca,com.
          3. You may also contact us at 888-STATEFUND (888-782-8338) to report your payroll and make a payment using one of the cards mentioned above.

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        1. How can I verify State Fund received and posted my payroll report?

          If you are a registered State Fund Online user, you can easily check your policy to verify your report and payment were received. You can also register for e-payroll and e-payment, which allows you to fill out your report online and pay your premium directly from your bank account. For more information on State Fund Online benefits, or to register, visit State Fund Online: Information and Services for Your Business or call 888-STATEFUND (888-782-8338).

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        Note: State Compensation Insurance Fund is not a branch of the State of California.

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