If your nonprofit organization’s experience modification factor has recently crossed the 125% threshold, a Cal OSHA assessment is likely on the way. However, by submitting the required documentation, you may be able to reduce the amount you owe.
The California Labor Code section 62.7 mandates employers with an Experience Mod over 125% to pay an annual assessment fee called the Targeted Inspection and Consultation Fund (TICF). The amount of the assessment is calculated based on the employer's total payroll as reported to their workers' compensation insurance carrier. Nonprofit organizations will also be subject to this annual mandate until their experience mod is reduced below the 125% level. The fee must be paid within the required time frame or an additional 25% late penalty will be charged to the employer.
The Cal OSHA TICF Unit will consider reducing the TICF Assessment fee for nonprofit organizations. They will require documentation, such as audited tax statements, showing the percentage of federal grant monies and percentage of donations during the year. A cover letter requesting the reduction and the documents should be faxed to (510) 286-7034. The TICF Unit will inform the employer if a reduction is granted. A signed faxed request by the nonprofit organization on company letterhead would initiate the refund process. If a reduction request is submitted, the fee should be paid on time to avoid the 25% late penalty. The Cal OSHA website provides additional details on the TICF details at: http://www.dir.ca.gov/dosh/ticffaq.html