This page was last updated on 05/13/02
INS Letter 408
TO: Workers Compensation Insurance Carriers Insuring Wisconsin Employers &
Wisconsin Self-Insured Employers
FROM: Judy Norman-Nunnery, Administrator
RE: WC ADMINISTRATIVE ASSESSMENT FY2000
The Department of Workforce Development is authorized per Section 102.75, Wis. Stats., to assess and collect the administration costs for the Wisconsin Workers Compensation Act from workers compensation insurance carriers and self-insured employers. Each companys assessment is based on the indemnity amount the company paid on claims closed during the previous calendar year.
Your companys indemnity amount is determined by summing the amounts paid or payable for each "first closed" claim. Indemnity includes payments for temporary total and partial disability, permanent total and partial disability, compromises, death benefits and funeral expenses, paid holidays, supplemental benefits, disfigurement, and vocational rehabilitation.
The departments workers compensation administration assessment rate is computed by dividing the current fiscal years net operating cost by the total indemnity payments by carriers and self-insurers for claims closed in the previous calendar year. The indemnity paid for 1998 first-closed claims was $177,542,251. The workers compensation divisions net operating revenue to be collected for fiscal year 2000 is $9,607,932. Based on this calculation ($9,607,932 -:- $177,542,251), the assessment rate is 0.0542 or 5.42%.
Self-insured employers are paying an additional .71 percent to cover the administrative cost of operating the self-insured employers program. The self-insured employers invoice also includes the $200 self-insured renewal fee for July 1, 1999 through June 30, 2000.
Each companys assessment amount was determined by multiplying your 1998 "first closed" claims total indemnity payments by the rate indicated. Each insurance companys claim detail listing is available on the divisions internet web site (see letterhead for address) under "Promptness/Assessment".
The invoice for your companys workers compensation assessment for fiscal year 2000 is enclosed. Payment is due by January 31, 2000. Please make your check or money order payable to DWD-Workers Compensation and mail it to the address indicated on the invoice.
If you have questions about your companys assessment, please contact Jean Culbert at (608) 266-6898.
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