Insurance companies typically calculate workers’ compensation premiums based on the size of a company’s payroll and the type of work the company performs. Most companies’ premiums are also adjusted by applying an experience modification, which is expressed as a percentage. This modification adjusts the premium up or down depending on the company’s workers’ compensation claims history and is part of a merit-based system designed to provide employers a financial incentive to reduce work-related accidents.Details
Workers’ compensation insurance is required of all California employers—even those who only employ one person, part-time. The policy serves as a social safety net to provide compensation for employees who become injured on the job and also limits the liability of employers if an employee sues over workplace-related injuries.
Workers’ compensation insurance premiums are collected initially as an estimate. An audit following the end of the policy term corrects any projections that were wrong during the policy term. Premiums are calculated based on employer’s industry “classification code” and the employer’s “payroll”.Details
All businesses in California must carry workers’ compensation insurance in the event anyone who performs work for a company is injured while working. Unlike other types of insurance, workers’ compensation policy premiums are collected as an estimate during the policy term. Once the policy term ends, an auditor checks the premium amounts by conducting an audit. The audit reveals any real-time changes, such as departing workers who would reduce a company’s payroll (and thus affect the premium amounts) during the insurance policy term.Details
Workers’ compensation premiums, or the amount the employer pays to insurance companies to protect the employer as well as the employee in the event of a workplace accident, can be challenging to calculate. A premium is based in part on the dollars in payroll the company pays as well as the employer’s industry. Underreporting of payroll is considered insurance fraud.Details
Workers’ compensation premiums, or the amount an employer pays to an insurance company in exchange for the carrier providing medical treatment and compensation to employees in the event of workplace accidents, are audited at the end of the policy term. Before the policy becomes effective, workers’ comp insurance companies prepare an initial estimate of premiums, based on the amount of payroll and the type of work the employer does, known as the “classification code”. Once the policy term ends, a premium audit is performed to account for any differences from the initial estimates. For example, if several employees left the company during the policy term and were not replaced, payroll would decrease and the amount the employer would pay to the insurance company would need to be adjusted. Also, if the type of work changed during the year, different classification codes may be utilized.Details
Workers’ compensation insurance, the nation’s oldest social insurance, protects employees and employers if an employee is injured while on the job. If employees get hurt or are sick because of work, an employer must pay workers’ compensation benefits, and those benefits are typically paid through insurance. Because this insurance affects nearly all California employers and employees, and it is often subject to disputes and litigation, it is important to understand what the insurance is, who must provide it, and how it works.Details
While a predetermined formula sets workers’ compensation insurance premiums, employers often dispute the amounts of the premiums they are asked to pay and it’s no surprise as to why: Insurance premiums are one of the many challenging costs for California employers. In fact, according to a 2014 report, California is the most expensive state for workers’ compensation costs.Details
Just as forming a business partnership under California law requires completion of certain tasks, ending a partnership is also a process. General partnerships, where there is no specific end date, must be dissolved using three basic steps. These steps apply when partners voluntarily agree to dissolve the partnership. Where partners cannot agree, legal action is typically the best way to resolve disputes over the dissolution process.Details
Reports of sexual harassment in various California workplaces are in the news almost daily, due, in part, to the recent Hollywood scandals regarding some of the industry’s biggest players. Thankfully for California employers, there are three general steps employers can take to reduce the likelihood of becoming part of the headlines.Details
If you hire an employee for one job, with certain duties, are you, as an employer in California, able to add additional requirements and threaten termination if the employee doesn’t complete these additional requirements?
This is a common situation, particularly when it comes to jobs requiring driver’s licenses. Although some employers initially hire an employee who does not have a license because such a requirement is not in the job description, many employers change the job descriptions to add a licensing requirement and threaten termination if the employee does not obtain a license.Details