Employer assessment fee reduction set

By CMTA Staff

Capitol Update, Dec. 4, 2014 Share this on FacebookTweet thisEmail this to a friend

Manufacturers should notice a dip in their workers’ compensation premium payments. The drop is due to a reduction in the Workers’ Compensation Premium Assessment (WCPA) fee that the Department of Industrial Relations (DIR) announced last month.

Insured companies will see an approximate 35 percent reduction in their WCPA fee while those businesses that are self-insured will experience a smaller reduction at about 6.25 percent.

Administered by the Division of Workers’ Compensation, the WCPA was imposed by the Legislature in 2008 to address a revenue shortfall in DIR operations due to legislative and administrative funding cuts during the state budget crisis. The WCPA fully funds the Division of Workers’ Compensation and partially funds the work of the Division of Occupational Safety and Health and the Division of Labor Standards Enforcement. Originally designed as a temporary solution, the assessment fee became permanent by legislative action in 2013.

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