Payroll Reporting & Billing

Your options for reporting payroll and paying premium are determined by the amount of premium for your policy.

If your policy is on a minimum premium basis, you’ll pay an initial payment, and then make only one payroll report and one premium payment at the end of your policy term. These policies are billed annually. Learn more about minimum premium policies.
If your policy isn’t a minimum premium policy and has base premium below $5,000, you’ll report your payroll every 6 months, and pay premium every quarter.

If you have base premium of $5,000 and above, you have a choice between monthly stipulated billing or monthly payroll reporting.

Two choices

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.

Why choose monthly payroll reporting and payment option?

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.

Why choose stipulated billing?

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.

The final bill

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.