L&I Covid-19 Premium Deferral Program and the L&I Accident Fund
L&I premium funds for employers and workers
A number of weeks in the past I posted an article concerning the well being of the L&I Accident Fund. There, I mentioned how historic rebates depleted the fund and led to important premium hikes. Nonetheless, these previous few months, COVID-19 impacted our financial system vastly. Subsequently, we should be particularly cautious to keep up the well being of the L&I Accident Fund.
Sometimes, employers pay their L&I insurance coverage premium on a quarterly foundation. L&I premium funds for the second quarter of 2020 are due July thirty first, 2020. Nonetheless, in accordance with a current L&I information bulletin, employers that have monetary hardship and can’t pay their employees’ compensation premiums can request a 90-day cost deferment. Beneath this reduction package deal, L&I’ll give employers till November 2nd, 2020 to pay these premiums for the second quarter of 2020. These premiums cowl the months of April, Could, and June of 2020. Apparently, that is the second premium extension this yr. Recall, L&I already prolonged the premium deadline for the primary quarter of 2020 to July thirty first, 2020.
Why is L&I extending the premium cost interval?
In extending these premium cost deadlines, L&I acknowledges that the Corona-Virus pandemic continues to affect employers financially. In consequence, employers could both request a 90-day extension for cost or a 90-day cost plan. Whatever the request, L&I can’t penalize employers. Moreover, late funds is not going to incur curiosity fees so long as employers pay the premiums throughout the 90-day extension interval.
Nonetheless, it is necessary to notice that employers usually are not robotically eligible for the premium-payment extension program. If granted, employers should nonetheless file quarterly reviews on time by July thirty first, 2020. Right here, to make the most of this system, employers should contact the L&I Collections, Training and Outreach Unit and apply. You may attain this unit by way of electronic mail or by calling 1-800-301-1826.
The affect of the extension on the L&I Accident Fund
The 90-day deferment possibility looks like an affordable means for L&I to assist employers. In any case, many employers are experiencing important monetary affect attributable to COVID-19. Furthermore, L&I’s actions will assist preserve ample stage of funding for the L&I Accident Fund. And but, it’s vital that we monitor the monetary well being of the fund. The L&I Accident Fund is the protection web for work damage victims. Regardless of the financial impacts of the pandemic, we should be certain that the Accident Fund stays steady and intact.
This text was first printed on https://tarareck.com/l-and-I-accident-fund-payment/
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