Monthly Payroll Reporting, Deposit, & Billing Terms Changes
March 2, 2017
(San Francisco, CA) -- We are introducing significant improvements to our billing terms and payment options to make it easier for policyholders to manage their cash flow and do business with us. Specifically, we are going to allow more policyholders to take advantage of monthly payroll reporting by lowering the base premium eligibility and deposit requirements. Additionally, we are extending terms of payments for stipulated billing plans. Here’s what’s new:
Monthly Payroll Reporting and Premium Payment:
Effective for accounts with May 1, 2017 anniversary dates or dates thereafter:
How to Request Monthly Payroll Reporting and Premium Payment Option
- The premium threshold for eligibility will be reduced from $25,000 to $5,000 Base Premium.
- The required premium deposit for monthly payroll reporting will be reduced from 25% to 10% of estimated annual premium (EAP).
- New Business Policies
- For qualifying new business applications incepting on or after May 1, you may request monthly payroll reporting by adding a comment in the PriceNow submission or by contacting the assigned underwriter prior to the quote being issued.
- Renewal Policies
- For qualifying renewal policies renewing on or after May 1, you may request monthly payroll reporting and premium payment by contacting the quoting underwriter before the quote is issued, or by sending an email to firstname.lastname@example.org no later than 30 calendar days prior to the policy renewal date.
Temporary staffing agencies, PEOs, and farm labor contractors, will continue to be required to pay premium via payroll reporting regardless of premium size. However, effective May 1, we will reduce their deposit requirement to 10% of EAP.
New Payment Terms for Stipulated Billing:
The stipulated billing plan remains the same for policyholders who like the convenience of predictable monthly or quarterly payments. As an additional benefit, beginning February 27, 2017 we are extending the payment terms from 10 to 25 calendar days.
Please note that policyholders who select monthly payroll reporting are still required to send their payroll reports with premium payment to State Fund within 10 calendar days following the payroll period.
And don’t forget we offer online services through State Fund Online including one-time payroll reporting and premium payments, ePayroll/ePayment email notifications, and AutoPay.
Questions? Contact your Senior Marketing Representative or our Broker Hotline at 800-834-2393. We appreciate the opportunity to serve you and your clients.
Established in 1914, by the state legislature, State Fund has operated for more than 100 years, is California’s largest provider of workers’ compensation insurance, and a vital asset to California businesses. State Fund supports California’s entrepreneurial spirit and plays a stabilizing role in the economy by providing fairly priced workers’ compensation insurance, making California workplaces safe, and restoring injured workers.