- How do I read my bill?
State Fund has several different types of bills, each issued for a specific reason. Your State Fund bill may seem overwhelming when you first look at it, but not every policyholder receives every bill. All bills have common components and information, which we explain below:
- Send your payment to this State Fund address.
- The company name and address listed in your policy. If incorrect, please make appropriate changes. Note: The address should only reflect the employer’s address, and not that of the bookkeeper. If you would like to add the bookkeeper’s address, you can click here for more information.
- The date on which you should typically have received the bill (NOT the date we issued or mailed the bill).
- Your policy number; please reference this in any communication to State Fund.
- The billing code we use to identify the bill type. State Fund has several different types of bills--each issued for a specific reason. This sample is a code 3A bill, which is a final bill you receive following an audit. For additional billing codes and explanations, click here.
- Coverage period for the bill.
- Class codes and their description. These are codes used to categorize the type of work done by the policyholder’s employees.
- Gross employee payroll for each classification.
- The base rate, determined by the class codes. Different codes are assessed at different rates based on the risk level of the work performed. In the example, auto mechanics are exposed to more potential injuries and illness than a clerical office worker, and therefore are assessed at a higher rate.
- The total base premium, calculated by multiplying payroll by the base rate and dividing by 100. This premium is based on the rates without any discounts applied. Please keep in mind you may have used interim rates on your payroll reports, and not the base rates used on your statement.
- Discounts applied to your policy premium. You may qualify for various discounts, such as group membership, a merit rating and a discount based upon your premium.
- The figure in the far right column represents total premium due for the designated payroll period, after discount deductions.
- The amount of premium you already paid for the policy period.
- Your premium due subtotal after subtracting your payments made from the total premium due. If you paid more than the total premium due, this would show a credit balance.
- Premium subtotal (see 1 above).
- Surcharges are State of California-enacted fees designed to improve the state’s workers’ compensation system. This section shows surcharges applied to your policy at the beginning of the year. You are initially billed for surcharges at the inception of your policy (on your deposit bill), based upon your estimated annual premium. This section of your final bill credits the amount that you already paid for the year and applies the difference. So, if your estimated annual premium was higher than your actual premium, you should receive a refund on those charges. If the estimated annual premium is lower, you are billed accordingly, as is the case in this example. For more information on the various surcharges, click here or read question #2.
- Final premium due after additional surcharges (unless credit balance).
- Payment terms, meaning how long you have to pay your bill. All State Fund Bills and Payroll Reports are due upon receipt and become delinquent on the 11th day after the bill date or end of the payroll reporting period. In this example, “NET – 10 Days” means your bill is delinquent if State Fund does not receive it within ten days after you receive it.
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- What are surcharges?
By Law, all California insurance carriers must participate in surcharge programs and collect statutory charges from policyholders, through premium charges, to assure adequate funding for various insurance programs.
These charges are first assessed at the beginning of your policy period shown on your Code 1 deposit bill. They are based upon your estimated annual premium for the upcoming policy year, which is one reason why it is important to provide an accurate estimate of employee payroll at renewal.
You will receive your final bill at the end of the year. The final surcharges will be on this bill (as well as on the estimated Code 0 bill when generated). If your payroll estimates at the beginning of the year were too low, you could receive a bill for surcharges. If your payroll estimates were high, you could receive a refund on your surcharges.
Complete listing of surcharges
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- When is my bill due?
All State Fund Bills and Payroll Reports are due upon receipt and become delinquent on the 11th day after the bill date or end of the payroll reporting period. Your bill and payroll reports will show they are both due in what is called “Net 10.” This means that the bills and the payroll reports are due back to State Fund within 10 days of your receiving them in the mail. The date on the bill typically reflects the date on which you should receive the bill (not the date we issued or mailed the bill).
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- I just paid my bill. Why did I receive another one?
Your policy renews and expires on the same day. For example, your 2009 policy ended on 01/01/2010, but since your policy is a continuous coverage policy, your 2010 year starts on 01/01/2010 as well. As a result, you will first get your deposit bill for the 2010 year, which is issued immediately. Once State Fund receives your last payroll report for your 2009 policy period, we will either set up an audit appointment or issue your 2009 final bill. Both bills are due “NET – 10 Days,” which means your bill is delinquent if State Fund does not receive it within ten days after you receive it, and payments must be made separately.
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