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Good Evening
10:35:45 PM CDT
Tuesday, May 26, 2015

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Insurance Coverage

Changing or canceling coverage If you have applied for a contractor's license Requesting a quote
Coverage for staffing services Independent contractor Retrospective rating plan
Coverage for volunteers Obtaining coverage Starting a new business in ND
Coverage Limits & Rights of Subrogation Optional coverage Subcontractor arrangements
Custom operations Out of State Employers Working in North Dakota The role of WSI
Deductible program Premium and payroll When your ND workers work outside ND
Definition of employer Premium audits Who needs coverage
Experience rating Proof of Insurance  

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 wsiemployerservices@nd.gov

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 premium.

Remuneration includes:

  • Commissions
  • Bonuses
  • 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.

Resource links:

July 2013 Classification Manual

July 2014 Classification Manual

2013-2014 Workers’ Compensation Rates

2014-2015 Workers’ Compensation Rates

Payroll Reporting:

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 cycle.

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 Payroll Reporting 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.
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