L&I Covid-19 Premium Deferral Program and L&I Accident Fund

L&I Premium Payments for Employers and Employees

A few weeks ago I posted an article on the health of the L&I Accident Fund. There, I discussed how historic redemptions depleted the fund and led to significant premium increases. However, in recent months, COVID-19 greatly impacted our economy. Therefore, we must take special care to maintain the health of the L&I Accident Fund.

Employers generally pay your L&I insurance premium on a quarterly basis. L&I premium payments for the second quarter of 2020 are due on July 31, 2020. However, according to a recent L&I newsletter, employers experiencing financial hardship and unable to pay their workers’ compensation premiums can apply a deferral of payment of 90 days. Under this aid package, L&I will give employers until November 2, 2020 to pay those premiums for the second quarter of 2020. These premiums cover the months of April, May and June 2020. Interestingly, this is the second extension of this year’s premium. Remember, L&I has already extended the premium deadline for the first quarter of 2020 to July 31, 2020.

Why does L&I extend the premium payment period?

By extending these premium payment terms, L&I recognizes that the Corona virus pandemic continues to affect employers financially. As a result, employers can request a 90-day extension to pay or a 90-day payment plan. Regardless of the request, L&I will not penalize employers. Additionally, late payments will not incur interest charges as long as employers pay premiums within the 90-day extension period.

However, it is important to note that employers are not automatically eligible for the premium payment extension program. If granted, employers must still submit quarterly reports on time by July 31, 2020. Here, to take advantage of the program, employers must contact L & I’s Collection, Education and Outreach Unit and apply. You can contact this unit by email or by calling 1-800-301-1826.

The impact of the extension on the L&I Accident Fund

The 90-day deferral option seems like a reasonable way for L&I to help employers. After all, many employers are experiencing a significant financial impact due to COVID-19. In addition, L&I actions will help maintain a sufficient level of funding for the L&I Accident Fund. And yet it is critical that we monitor the financial health of the fund. The L&I Accident Fund is the safety net for workplace injury victims. Despite the economic impacts of the pandemic, we must ensure that the Accident Fund remains stable and intact.

This article was first published at https://tarareck.com/l-and-I-accident-fund-payment/

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