Your options for reporting payroll and paying premium are determined by the amount of premium for your policy.
If you have base premium of $5,000 and above, you have a choice between monthly stipulated billing or monthly payroll reporting.
Monthly Payroll Reporting and Payment |
Stipulated Billing |
Report payroll monthly |
Report payroll twice per policy term |
Pay monthly premium along with your submission of the payroll report |
Pay monthly premium upon receipt of stipulated bill |
Monthly premium is based on payroll |
Monthly premium is calculated based on estimated annual premium |
You can report payroll and pay premium electronically by signing up at State Fund Online.
Businesses that have varying numbers of employees month to month may get overall savings on premium by reporting payroll on a monthly basis, because the amount of premium owed reflects how many employees you have each month. In the months that you have fewer employees, you will pay a lower premium with this option.
If your business is a temporary staffing agency, professional employment organization or farm labor contractor, you’re only option is monthly payroll reporting and payment.
If your payroll is relatively stable throughout the year, stipulated billing might be better because the final premium may not change much. This option provides you a predictable bill each month, and less work to report payroll throughout the year.
Keep in mind all policies will have a final bill that determines how much you’ll owe – or be credited – for the previous year. The final bill reflects the total amount of actual payroll you had for the entire year. The final bill premium is determined by either reported payroll or audited payroll from a payroll audit. This is because actual payroll can vary from the estimated payroll made at the beginning of a policy term, especially with stipulated billing policies.