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Workers Compensation Executive Officers Minimum and Maximum Payroll

By August 26, 2017August 11th, 2021Insurance

In California, effective January 1, 2021 if an executive officer chooses to be included or fails to sign the appropriate officer exclusion form the entire remuneration earned by each executive officer during the policy period shall be used as the payroll, subject to a minimum remuneration of $54,900 per annum and a maximum remuneration of $144,300 per annum for each executive officer covered under the policy.

It is important that you keep an eye out for the office exclusion form that your carrier will send to you and have each eligible office complete the form if they choose to be excluded as the carrier cannot backdate if the form is not received in a timely manner.

BE CAREFUL WHEN ELECTING TO EXCLUDE OFFICERS, as recent changes in Health Insurance policies specifically exclude work related injuries. We recommend including all officers to assure they are properly protected in the event of an injury while at work.

 

This provision also applies to executive officers of a corporation while the corporation is covered as a member of a partnership or joint venture operation and to executive officers of a limited liability company.

Executive officers”, as used herein, means those officers of a corporation or a limited liability company commonly known and styled as president, vice president, secretary, assistant secretary, treasurer or assistant treasurer and shall include, in addition thereto, any other executive officers enumerated in and empowered by the charter or any regularly adopted by-laws of the corporation and who are elected or appointed and empowered by the directors or set forth in the operating agreement of a limited liability company. When such persons are not executive officers during the entire policy period, the payroll limitation shall be prorated based upon the number of weeks that such persons were executive officers during the policy period.

The rules for Payroll Remuneration can be found at the WCIRB.com website under the Uniform Statistical Reporting Plan Section V Payroll – Remuneration.

If you are interested in quotes for your companies workers compensation insurance, complete the following form and one of our licensed agents will contact you or call our office for a free quote.

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If you need assistance in obtaining workers compensation for your company or have additional questions please contact our office at 877-428-8778

FOR FREE QUOTE ON YOUR WORKERS COMPENSATION INSURANCE CALL 877-428-8778 or COMPLETE THE REQUEST FORM

 

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