2012 Assessment Billing Notice: Ex Mod Rates >125% Subject to Cal/OSHA Inspection
Feb 8, 2012
2012 Assessment Billing Notice:
Companies with Experience Modification Rates of 125% or Greater, Subject to Cal/OSHA Inspection and TICF Assessment
CLICK HERE for pdf.
January 31, 2012 - California companies having an Experience Modification (Ex MOD) of 125% or greater are subject to the Cal/OSHA Targeted Inspection and Consultation Fund (TICF) Assessment. The Cal/OSHA TICF is part of the workers' compensation insurance reform legislation passed by the California Legislature in July of 1993. The legal mandate for the assessment is codified at California Labor Code §62.7 and §62.9 (http://www.dir.ca.gov/dosh/CaliforniaLC627and629.pdf)
Insured employers with an experience modification rating (ExMOD) of 125% or more are required to participate in this program. Once an employer's ExMOD drops below 125%, they are no longer subject to a TICF assessment. See Labor Code §62.9(b)(1).
TICF assessments are mailed to employers in February or March of every year. See Labor Code §62.9(l).
The amount of the assessment is based on total CA payroll reported by employers to their workers' compensation insurance carrier. The TCIF assessment has a maximum of $10,000 for companies with a payroll in excess of $20 million. Labor Code 62.9 was revised in 2008; creating a new penalty table as follows:
|
Workers’ Compensation Payroll Range |
Assessment Amount |
|
Less than $250,000 |
$100 |
|
$250,001 - $500,000 |
$200 |
|
$500,001 - $750,000 |
$400 |
|
$750,001 - $1,000,000 |
$600 |
|
$1,000,001 - $1,500,000 |
$800 |
|
$1,500,001 - $2,000,000 |
$1,000 |
|
$2,000,001 - $2,500,000 |
$1,500 |
|
$2,500,001 - $3,500,000 |
$2,000 |
|
$3,500,001 - $4,500,000 |
$2,500 |
|
$4,500,001 - $5,500,000 |
$3,000 |
|
$5,500,001 - $7,000,000 |
$3,500 |
|
$7,000,001 - $20,000,000 |
$6,700 |
|
$20,000,001 and above |
$10,000 |
The ExMOD used in the assessment is based on California payroll and loss experience data reported to the Workers' Compensation Insurance Rating Bureau (WCIRB) by workers' compensation insurance carriers. To dispute an ExMOD rating, please contact Barney & Barney to verify this data. For the 2012 TICF Assessment, the 2011 policy year ExMOD was used.
For the 2012 TICF Assessment, the 2009 policy year workers' compensation payroll was used. To dispute payroll figures, employers can contact their insurance carrier (or previous insurance carrier) to verify payroll amounts.
The penalty amounts collected supports Cal/OSHA's "High Hazard Employer Program" (HHEP). The HHEP provides consultative assistance to help employers with high ExMODs to decrease work-related injuries and illnesses. To receive HHEP Consultative assistance, call the High Hazard Consultation Program office at (559) 454-0615, or contact a Barney & Barney Risk Consultant for additional clarification and support.
Note, the assessment must be paid within thirty (30) days from the date of the Billing Notice. Remit a check made payable to the "Department of Industrial Relations, Fund 096.01" to the following address and be sure to include your Billing Notice Invoice Number on the check to get credit for your payment.
|
If sending via US Mail: Department of Industrial Relations Accounting - TIC Fund 096.01 P. O. Box 420603 San Francisco CA 94142-0603 |
If sending via Overnight Delivery: State of California Department of Industrial Relations Accounting - TIC Fund 096.01, 10th Floor 455 Golden Gate Avenue San Francisco CA 94102 |
To pay online with a credit card, go to www.dir.ca.gov/dosh/ticf.html.
A Notice of Delinquency asking for payment of the TICF Assessment will be sent within 15 days from the date of the Notice of Delinquency. If payment is not received in 15 days, a referral for collection will be made to the California Franchise Tax Board. See Labor Code §62.9(c)(4) and(5). The DIR will levy a penalty equal to 25% of your current year's assessment amount.
For more information on Barney & Barney's online Risk Management Center, please visit https://rmc.barneyandbarney.com
For questions regarding your TICF Assessment, please contact:
Barney & Barney's Risk and Loss Advisors Team
800-321-4696
Cal/OSHA TICF Assessment Unit
510-286-6880
www.doshticf@hq.dir.ca.gov
