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How do I read my bill?

Bills from State Fund all have common features explained below:

    Bill sample

  1. Update your address by using the empty box at the lower right to write in changes. Note: The address should reflect the employer’s address. If you would like to add the bookkeeper’s address to your policy, call the State Fund Customer Service Center at (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. The 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 receive a Final Audit Statement, the audited payroll is used to calculate your final premium, see Payroll Audited).
  6. Payroll Audited = If you receive a Final Audit Statement, the Payroll Audited column will appear 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 may 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 multiplied per $100 of payroll for 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 appear here.  Your policy’s Rating Plan Modifier and Premium Discount Modifier may also increase or decrease your premium. After adjustments, the result will be the Total Premium for your policy.
  10. Minimum Premium = The least amount of premium charged for the policy term.  If you have no Reported Payroll or Audited Payroll, or the payroll amounts, as calculated, result in premium that is 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.

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

  1. Total Charges = The total cost of the policy for the specific policy term indicated..

    Bill sample

  1. This section reflects the total of the premium and surcharge payments made for the policy term. It may also reflect credit for your premium deposit if the deposit has not been applied to the next policy term.
  2. 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: Initial payment that may be required when binding a workers’ compensation insurance policy.
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: 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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