MA Workers Comp Payroll Basis for Sole Proprieters & Partners, effective October 1, 2015

October 6, 2015||inBusiness Insurance|business insurance, workers comp, workers compensation insurance

The Workers Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA) has announced the payroll determination for sole proprietors, legal partnership partners, and members of an LLC, effective October 1, 2015.

The salary basis of premium for sole proprietors, partners of a legal partnership, and members of an LLC who elect to become employees and obtain workers’ compensation insurance coverage is a function of the Statewide Average Weekly Wage (SAWW) and is calculated as follows:

MA Workers Comp Payroll Basis for Sole Proprieters & Partners, effective October 1, 2015
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Step 1: Initial Value = 70% x SAWW x 52 weeks.
Step 2: Basis of Premium equals the Initial Value rounded to the nearest $100.

Based on this formula, the SAWW in the Commonwealth of Massachusetts is
$1,256.47 effective October 1, 2015.,  Consequently, the premium basis for sole proprietors, partners of a legal partnership, and members of an LLC who elect to become employees and obtain workers’ compensation insurance coverage is $45,700.

This change only affects new and renewal workers’ compensation businesses effective on or after October 1, 2015.

Source: WCIRBMA

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