Workers' compensation assessments

Insurance companies are required to bill and collect assessments on insured employers. The assessments fund the Workers' Compensation Special Fund and the Workers’ Compensation Trust Fund.

Details

The Workers' Compensation Special Fund (Special Fund) and the Workers' Compensation Trust Fund (Trust Fund) were established to fund the operating expenses for the Department of Industrial Accidents (DIA). The 2 funds pay or reimburse employees whose employer had no workers’ compensation, and insurance companies specifically outlined in MGL c. 152, § 65. Both the Special Fund and the Trust Fund are funded by revenues generated from assessments imposed on all insured employers subject to MGL c. 152.

Insurance companies are required by law to bill and collect assessments on insured employers. The assessments are listed separately on premium notices, and won’t be reported as premiums for tax or regulatory purposes.

Assessment rates are determined annually using the procedures outlined in MGL c. 152, § 65(4)

  • This process occurs between April and June and any assessment rate change is sent to the insurance companies
  • The DIA uses the Workers' Compensation Rating and Inspection Bureau  to communicate the assessment rate changes that are published in July
  • The assessment rate changes are applied to policies effective July 1 of that year and after

All insurers licensed in Massachusetts to write workers' compensation insurance must report and send collected assessments to the DIA quarterly.

  • The DIA mails a blank assessment in the first week of January, April, July and October
  • Insurance companies are required to complete the form and send the assessment to the Commonwealth within 30 days, or a 5% penalty is assessed.

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