Workers’ compensation premium is based on the amount of remuneration paid to workers 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 premium.
- 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 (rent value of a house or apartment), or other gratuities received by a worker as part of pay
WSI uses your payroll reports to calculate your workers' compensation premium. The 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 of 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. See Forms & Resource section for current classification manual.
An employer who opens an account with WSI is obligated to report all wages earned in North Dakota to WSI. See North Dakota Century Code § 65-08-01 (5).
Some classes of employment are inherently more hazardous than others, and WSI's 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.
See Forms & Resource section for current classification manual.
If you choose to make installment payments, interest is charged on the outstanding balance. Installment payments are limited to prepaid premiums only. The interest rate equals the base rate posted by the Bank of North Dakota plus 2.5%. Premiums in default are assessed penalty interest at 2% per month, 24% annually.
The minimum premium charge for an account is $250 per period, even if you have no employees. This rate is subject to change on an annual basis. The initial minimum payment due at the time of renewal may not be less than $250 unless the balance owing is less than $250.
WSI issues a Certificate of Payment as a proof of insurance coverage to all active policyholders who are current with their premium payments. The Certificate of Payment reflects an expiration date that coincides with the amount of the payment received. Each subsequent minimum payment will generate a certificate for 60 days. If payment of the entire balance is received, the certificate will be issued for the full policy period.