Covid 19 Premium Adjustments
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Established in 1914 by the state legislature, State Fund is California's most reliable 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, helping California employers keep their workplaces safe, and restoring injured workers.

Reduce Your Workers' Compensation Premium Due to COVID-19

As the COVID-19 crisis continues to challenge many Californians, it may be possible to ease the financial impact to your business. If you’ve had a reduction in workforce, temporary layoffs, or employees working from home in a different capacity, you may be able to adjust your policy.

Contact your Broker or State Fund Representative toll free at (888) 782-8338.

Here’s how to make the request:

First, you need to know if you are on Recurring Billing or Payroll Reporting. If you are unsure, or have any questions about this process contact us.

For Policies on Recurring Billing, please submit revised estimated annual payrolls that accurately reflect the impact of the COVID-19 pandemic on your business and we will calculate a new Estimated Annual Premium (EAP) for the rest of your policy period.

  • The revised annual payrolls must be for each of the classifications on the policy, and must include the full policy term (covering the pre-crisis and post-crisis time periods in one amount for each class code).
  • Please also provide the corresponding number of full-time and part-time employee counts.

Please send the revised estimated annual payrolls to your broker, servicing underwriter, or our Service Center.

For Policies on Payroll Reporting, please continue to submit your accurate payroll reports as usual.

Details About Reducing Your Premium for Employees Now Working from Home

  1. An employee’s payroll can be temporarily assignable to classification 8810, Clerical Office Employees, if:
    • The employee is working from home, their duties meet the definition of a Clerical Office Employee, and he or she is not normally assignable to a class that includes Clerical Office Employees.
      • The non-8810 Governing Class (G-Class) must remain on the policy.
      • The payrolls for the G-Class must be updated as well as any new 8810 payroll exposure.
      • Assignment of payroll into 8810 is effective 3/19/20 until 60 days after the Stay at Home order is lifted.
  2. Payments made to non-working employees should be excluded from the basis of premium if:
    • The exclusion of paid leave is a result of the stay-at-home order and the employee is performing no duties or work activities of any kind in the service of the employer.
    • The excluded amounts do not exceed the employee’s regular rate of pay such as overtime or bonuses.
      • The exclusion of paid leave is effective 3/19/20 until 30 days after the stay-at-home order is lifted.
  3. Payroll Recordkeeping:
    • Employers must maintain records that document the change in employee duties and also segregate such payments during the time frames specified in Rules 1 and 2 above.
  4. Reporting excluded payments to State Fund

    Please report excluded payments (those meeting the criteria in B and C above.) in email to State Fund at

    Be sure to include:

    • policy number and year
    • policy name
    • date the payments started, on or after March 19, 2020
    • date the payments ended, up to the policy expiration date
    • total amount of payments to exclude from payroll
    • total amount of payroll that is earnings for work time

If you have any questions we are here to help. Contact your Broker or State Fund Representative toll free at (888) 782-8338.

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