Your options for reporting payroll and paying premium are determined by the amount of estimated annual premium (EAP) for your policy.
- If you have a minimum premium policy, you’ll pay the whole estimated premium up-front, and report at least one payroll on your policy term. These policies are billed annually. Learn more about minimum premium policies.
- During the binding process or at renewal, you'll be presented with varying bill plan options, depending on the size of your EAP.
Basic features of stipulated billing
- Pay a down payment based on a percentage of your EAP
- Report payroll up to twice a policy term
- Pay premium upon receipt of stipulated bill
- Monthly premium is calculated based on the remaining estimated annual premium
You can report payroll and pay premium electronically by signing up at State Fund Online.
Monthly payroll reporting requirements
Businesses that meet certain requirements based on EAP and other account characteristics can choose to have the Pay Based on Payroll Bill Plan. With this option, if your business has varying numbers of employees month to month, you may get overall savings on premium by reporting payroll on a monthly basis. This is because the amount of premium owed reflects how much payroll you have each month.
If your business is a temporary staffing agency, professional employment organization, or farm labor contractor, your only option is the Pay Based on Payroll Bill Plan.
The final bill
Keep in mind all policies will have a final bill that determines how much you’ll owe – or be credited – for the previous year. The final bill reflects the total amount of actual payroll you had for the entire year. The final bill premium is determined by either reported payroll or audited payroll from a payroll audit. This is because actual payroll can vary from the estimated payroll made at the beginning of a policy term, especially with stipulated billing policies.