You do not need to calculate payroll premium if your policy is on a stipulated billing cycle.
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
There are three different ways to submit your payroll reports.
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.
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:
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).
Note: State Compensation Insurance Fund is not a branch of the State of California.