Important VA Insurance announcement!

Discussion in 'Business Operations' started by VBsnow, Feb 29, 2008.

  1. VBsnow

    VBsnow LawnSite Member
    Posts: 241

    Many of you understand what this means. For those of you who do not, the owner/officer/member/managers of your company are charged on a set payroll instead of your actual earnings. This in effect raises most of your cost after it is in effect. I will try to answer questions but I will be in and out this and next week. This is a change at NCCI so other states may be affected that use NCCI. Consult your local agent to see if you are affected by the change outside of my area. NC is not an NCCI state. Anyway, here it is:


    WC Exec payroll increased effective 4/1/08

    In addition to the new loss cost factors filed by NCCI effective 4/1/2008 there has also been an increase in the minimum and maximum payroll for executive officers and sole proprietors. Please advise your insured so that there are no surprises at audit time.

    Effective 4/1/2008 --Maximum payroll applicable in accordance with Basic Manual Rule 2-E-1- “Executive Officers” has been increased from $500 per week to $750 per week. This increases it from $26,000 to $39,000

    Minimum payroll for accordance with Basic Manual Rule 2-E-1- “Executive Officers” has been increased from $150 to $225

    Premium Determination for Partners and Sole Proprietors accordance with Basic Manual Rule 2-E-3 has been increased from $15,700 to $19,600

    The payroll limitation caps the insurance premium charge by limiting the amount of payroll applied to executive officers. An average weekly amount of pay is usually established by the individual state to apply to executive officers. This figure is then multiplied by the number of weeks for which the executive receives compensation. Any remuneration above the figure developed by this formula or approach is not included for the purpose of premium determination.
     

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