When is the self-insurers 50-5 assessment filed?
The self-insurer's (WCL §50-5) is an annual assessment rather than a quarterly assessment. This assessment will continue to be based on reported indemnity. Base factor reports and assessment notices are available on our website for electronic submission.
What is the annual assessment rate based on?
In accordance with Title 12 NYCRR Part 318 that governs the assessment process, the assessment rate will be determined every year by dividing the total estimated annual expenses of the Board (including administrative and special fund costs) by an assessment base of total estimated statewide premium.
What is "estimated statewide premium"?
For employers covered by an insurance policy from an insurance carrier or NYSIF standard premium is defined as the full annual value of premiums booked during the quarter. For private self-insured employers, a standard premium equivalent will be determined. Estimated statewide premium equals the premium related to insurance carrier or NYSIF policies and the standard premium equivalent for all self-insurers.
What is "standard premium equivalent" for employers that self-insure?
The standard premium equivalent for private employers that self-insure is quarterly payroll by class code, multiplied by the loss cost per hundred dollars of payroll. Payroll class codes describe the type of work employee is engaged in. The loss cost rate for each class of payroll is published on the Board's website. This product is multiplied by the assessment rate as determined by the Chair.
Do private employers that self-insure for workers' compensation have to breakout payroll by classification?
Yes. Private self-insured employers will have to breakout their quarterly payroll by classification and apply specific loss rates to each class of payroll to determine their standard premium equivalent.
Do municipal employers or school districts that self-insure for workers' compensation have to breakout payroll by classification?
No. Municipal employers and school districts that self-insure do not need to breakout their payroll by classification. They will apply one blended loss cost rate (rather than different rates by classification) to their total payroll to determine their standard premium equivalent.
What does "blended loss cost" rate mean and how was it developed?
Because of the varied nature of municipal payroll and the challenges municipal self-insurers would face breaking out payroll by specific class, standard premium equivalents for the municipal self-insurers will be determined by applying a blended loss cost rate developed by the Chair to the total actual payroll for each municipal self-insurer. The loss cost rates for municipal self-insurers can be found on the Board's website. There is one rate developed for self-insured school districts and a separate rate developed for all other types of self-insured municipalities.
When will I be required to submit reports and payment for these assessments?
Reports and payments will be filed quarterly in accordance with the following schedule:
Period Payroll Form and Payment Due Q1 Actual payroll for January 1 - March 31 Postmarked no later than April 30 Q2 Actual payroll for April 1 - June 30 Postmarked no later than July 31 Q3 Actual payroll for July 1 - September 30 Postmarked no later than October 31 Q4 Actual payroll for October 1 - December 31 Postmarked no later than January 31
Is there a penalty for failure to report or pay the assessment by the due date?
Yes. If a self-insurer does not submit or underpays an assessment as a result of inaccurate reporting the self-insurer must pay the full amount of the underpaid assessment along with interest at the rate of 9% per annum. Further, if it is determined that the payer knew or should have known that the reported information was inaccurate an additional penalty of up to 20% may be imposed. In addition, the failure of a self-insurer to timely remit assessment payments and required reports shall constitute good cause for revocation of self-insured status.
If I am no longer actively self-insured for workers' compensation, do I have to file the quarterly report and pay assessments?
No. Only employers that are actively self-insured would need to file a report and pay quarterly assessments. The new assessment process is designed to capture the assessments based upon active coverage. However, active and inactive private self-insured entities are still responsible for filing the GA 1.6 Base Factor Report and the 50-5 Annual Private Self-Insured Assessment Form (GA-5).
Questions may be sent to: WCBFinanceOffice@wcb.ny.gov