Missouri Gov. Bob Holden announced that the administrative tax on Missouri workers’ compensation insurance premiums will drop 50 percent in 2004, saving employers more than $12 million.
The administrative tax will decline to 1 percent of premiums next year, and the surcharge that funds benefits from the Second Injury Fund will remain at 4 percent.
Renee Slusher, director of the Division of Workers’ Compensation, said the reorganizations in her office as well as the larger tax pool , due to an increase in insurance premiums, have allowed the department to make the cut in the tax. Department reorganization efforts include streamlining data entry, mail service changes, and increased use of electronic filings. These efficiency efforts have allowed the department to cut state positions and save money for Missouri employers.
State law requires the director of the Division of Workers’ Compensation to determine the rate of tax to be paid in the following calendar year, based on projected expenditures. The revenue from the Second Injury Fund surcharge pays benefits to injured workers who had previous disabilities. The amount of surcharge must be adequate to cover payments from the fund during the calendar year.
Topics Commercial Lines Workers' Compensation Business Insurance Missouri
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