In this edition: Information on 2015 updates to payroll minimum and maximum limitations, physical audit threshold, and classification changes.
Each year the WCIRB proposes updates to the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP). The Insurance Commissioner approved all of the proposed USRP changes for January 1, 2015 including updates to the payroll limitations and enhancements to over 120 classifications. No changes were proposed for dual wage construction or erection classification thresholds.
The payroll minimum that is applicable to executive officers, partners, individual employers, and limited liability corporation (LLC) members and managers was increased from $42,900 to $44,200. The payroll maximum applicable to these was increased from $109,200 to $111,800. For more information about the USRP rule regarding these payroll limitations, see Part 3, Section V, Payroll – Remuneration, Rule 1, Payroll – Remuneration, Subrules j, k, l and m. Several classifications applicable to entertainers and athletic teams also include a maximum payroll limitation, and these classifications have been updated to reflect the $111,800 limitation.
The requirements establishing which policies must be physically audited have been updated and clarified (see USRP Section VI, Rule 4, Audit of Payroll). Policies in general must be physically audited if:
A significant change was approved for Classification 5606, Contractors – executive level supervisors. Since 1950, this classification has contained a unique requirement that its use must be confirmed by specific written approval from the WCIRB. In many cases, this requirement necessitated a special classification inspection. This approval requirement has been removed; all other requirements and restrictions regarding the assignment of 5606 remain unchanged.
Changes were approved for over 120 classifications in connection with the WCIRB’s ongoing USRP Enhancement project. These changes expand and improve the USRP description and definition for each classification to clarify the intended scope of the classification and to provide direction as to how related operations shall be classified. These changes do not change the scope or application of each classification, but make it easier to understand how each classification is administered.
All of the approved changes are summarized at the beginning of the USRP at Memorandum pages 1 through 10. The changes are also summarized in the WCIRB’s Quick Reference Guide 2015. Both the USRP and Quick Reference Guide may be viewed, printed or downloaded from the Manuals and Plans page in the Publications and Filings section of the WCIRB website (http://www.wcirb.com).