If you have a question or concern regarding insurance coverage, or if you are an existing policyholder, feel free to contact our Employer Services Department via email at
Premium and Payroll
Your premium is based on the amount of remuneration you paid during the policy period. Remuneration means money or substitutes for
money. North Dakota Law prohibits employers from deducting wages or otherwise billing workers for any part of the
- Extra pay for overtime
- Reportable tips
- Pay for holidays, vacations, or sick leave
- Cafeteria plans, 401K’s, Annuity plans, Davis-Bacon wages, etc.
- Value of meals, lodging, or other gratuities received by a worker as part of pay.
- Rental value of a house or apartment provided to a worker as part of pay.
Liability for Payment of Workers’ Compensation Premium:
As a general rule, when a business organizes formally as a
corporation, an LLC, or some similar entity, one of the major benefits is the
protection of the owners’ personal assets against business losses.
North Dakota State Law, however, permits WSI to pursue individuals personally
for the debts of their business. North Dakota Century Code § 65-04-26.1 assesses
personal liability against officers and directors of a corporation, managers
and governors of a limited liability company, partners in a limited liability
partnership, and employees who own 20% of the business and have control over
the reporting of payroll to WSI. Once liability is assessed and the employer’s
appeal time has expired, WSI may pursue the debt through a civil lawsuit.
The employees of an independent contractor or subcontractor are deemed
employees of the general contractor pursuant to N.D.C.C. 65-01-02(16)(c).
As a consequence, the statute authorizes the assessment of unpaid premium
against the general contractor for the unpaid workers’ compensation
premium debt of his subcontractors or independent contractors.
Premium Calculation and Payroll Reports:
Your payroll reports are used by WSI
to calculate the premium you pay for workers’ compensation insurance. Upon reviewing the payroll report, premium
is calculated by applying the rate for a class of employment to the amount of
taxable payroll in that classification. If you have several classifications, your premium is the sum total for
all classifications. The maximum taxable payroll for each worker is capped at 70% of the state’s average annual
wage. This amount is commonly referred to as the “wage cap”. The average
annual wage cap becomes effective on July 1 of each year.
Determining Classifications and Rates:
Some classes of employment are inherently more hazardous than others, and our rate class system reflects that
risk. Based on the risk, each class of employment is assigned a classification. In turn, each classification is assigned a rate. These rates reflect
factors such as occupational risk, medical costs, and benefit levels.
July 2009 Classification Manual
July 2010 Classification Manual
2009-2010 Workers’ Compensation Rates
2010-2011 Workers’ Compensation Rates
WSI requires employers to supply payroll information on an
annual basis. When a new account is
established, estimated payroll is requested for 12 months and employers are
billed premium based on that estimate.
After the 12 months
have lapsed, employers are mailed an Employer Payroll Report requesting actual
wages for the 12-month payroll period. The completed report is due 30 days after your account’s renewal.
If you fail to submit your payroll report by the due date, you will be penalized $50. Continued failure to report payroll may lead
to an additional penalty and an “uninsured” status.
If you estimated more
payroll than your actual wages, your billing statement will reflect the
appropriate credit, just as an understated estimate will generate additional
premium. We use your submitted actual
payroll figures to bill an estimated premium for the next 12-month payroll
If you anticipate a significant increase or decrease in payroll from
the submitted amounts, please note this change on your payroll report
or contact the Employer Services Department and an appropriate billing
will be generated.
You may choose to complete your payroll report by hand and mail or
fax it to us or complete your payroll report through our online
system. The online process is efficient, confidential,
and paper free. On the 16th day of the month of your account’s
renewal, your account information is available online. Your online access
code is printed on the payroll report. You may aslo contact the Employer
Services Department to receive your code.
In addition to
gathering annual payroll information, the payroll report reflects coverage in
place for owners, spouses, and/or family members. Refer to our Optional Coverage section for more details.
Contact Employer Services at (701) 328-3800 or 1-800-777-5033 if any
of the following changes occur to your operation:
- General nature of operation
- The type(s) of work being done
- Trade name
- Incorporation of business or change in corporate officer status
- Subsidiaries or new locations
- Mailing address
- You cease having workers or are closing your business
- Any of your workers will be working outside North Dakota
- Change of ownership
- Obtain or cease services of a professional employer organization (PEO)
Premium Payment Options:
You may either pay your premium in a single payment by the due date or in monthly installments. If you choose to make installment payments,
interest is charged on the outstanding balance. The interest rate equals the base rate posted by the Bank of
North Dakota plus 2.5%.
- Installment payments are limited to prepaid premiums only.
- Premiums in default are assessed penalty interest at 2% per month, 24% annually.