Each state has rules regarding the exclusion or inclusion of sole proprietors, partners, corporate officers and members of an LLC. If you are included, you are subject to a minimum and maximum amount of payroll applied to your assigned class code. Conversely, if the wage of the included officer reaches the maximum wage, no further premium is paid. The NEXT billing system will automatically add wage to included officers that draw no wage to ensure they attain the minimum and will cease calculation of premium when their wage exceeds the state maximum.
Articles in this section
- Why is the premium for an owner/officer based on a payroll amount that’s different from their reported payroll?
- Who can be excluded from a workers' comp policy?
- What class code(s) should my employees be under for my workers' comp policy?
- How do I classify my employees for my workers’ comp policy?
- What do I do if I have a new employee?
- How can I understand my billing frequency for Pay As You Go?
- How do I know if I have to classify contractors as employees on my workers' comp policy according to California's AB5?
- What impact will AB5 in California (also known as the “gig worker bill”) have on my workers’ comp policy?
- What is workers’ comp insurance?
- What are the billing options for workers’ compensation policies?