Nonprofits Receive Reduction in TICF Assessments for Ex Mods Over 125%
Has your nonprofit organization’s workers compensation experience modification recently crossed the 125th percentile threshold? If you haven’t received already, a Cal OSHA assessment is likely on the way. Your Chapman Team can support you to potentially reduce the amount of that assessment.
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. For instructions on how to request this reduction, click here.After submission of a reduction request, Chapman recommends payment of the assessment on time to avoid the 25% late penalty. The TICF Unit will inform the employer if a reduction is granted. The Cal OSHA website provides additional details on the TICF at: http://www.dir.ca.gov/dosh/ticffaq.html. Additionally, Chapman’s Risk Management Expert, Kathy Javaneau is also available to assist you through this process and can be contacted at kjavaneau@chapmanins.com.