L&I Premium Payments for Employers and Employees

A few weeks ago I published an article about the health of the L&I Accident Fund. There, I discussed how historic redemptions depleted the fund and caused significant increases in premiums. However, in recent months, COVID-19 has greatly impacted our economy. Therefore, we must be especially careful to maintain the health of the L&I Accident Fund.

Employers generally pay your L&I insurance premium quarterly. 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 workers’ compensation premiums may request a 90-day deferral of payment. Under this relief 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 premium this year. . Remember, L&I has already extended the premium deadline for the first quarter of 2020 to July 31, 2020.

Why is L&I extending the premium payment period?

By extending these premium payment deadlines, L&I recognizes that the coronavirus pandemic continues to affect employers financially. As a result, employers can request a 90-day pay extension or a 90-day pay 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 file quarterly reports on time by July 31, 2020. Here, to take advantage of the program, employers must contact L&I’s Collections, 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 extension option seems like a reasonable way for L&I to help employers. After all, many employers are experiencing a significant financial impact from COVID-19. In addition, L&I’s 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 victims of work injuries. 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/