MO Workers' Compensation Tax Memorandum 2016: Workers' compensation administrative tax, Second Injury Fund surcharges and administrative surcharge

Missouri Division of Workers’ Compensation is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities. Relay Missouri: 800-735-2966 3315 West Truman Boulevard, Room 131 P.O. Box 58 Jefferson City, MO 65102-0058 Phone: 573-751-4231 Fax: 573-751-2012 www.labor.mo.gov/DWC E-mail: workerscomp@labor.mo.gov JEREMIAH W. (JAY) NIXON GOVERNOR RYAN MCKENNA DEPARTMENT DIRECTOR JOHN J. HICKEY DIVISION DIRECTOR To: All Workers’ Compensation Insurance Companies, Self-Insured Employers, Group Trusts, and Third Party Administrators From: Ryan McKenna, Director Missouri Department of Labor and Industrial Relations John M. Huff, Director Missouri Department of Insurance, Financial Institutions and Professional Registration Date: October 31, 2015 Subject Workers’ Compensation Administrative Tax, Administrative Surcharge, Second Injury Fund Surcharge, and Second Injury Fund Supplemental Surcharge for the 2016 Calendar Year As required by Sections 287.690, 287.715 and 287.716. RSMo., the State of Missouri shall impose a workers’ compensation administrative tax, administrative surcharge, Second Injury Fund surcharge, and a Second Injury Fund supplemental surcharge. For calendar year 2016, there will be no change from calendar year 2015. For calendar year 2016, the administrative tax will be 1.0 percent, the administrative surcharge will be 1.0 percent, the Second Injury Fund surcharge will be 3.0 percent, and the Second Injury Fund supplemental surcharge will be 3.0 percent. Section 287.690, RSMo., authorizes the imposition of an administrative tax not to exceed two percent. Section 287.716, RSMo., authorizes the imposition of an administrative surcharge at the same rate as the administrative tax. The revenue from the administrative tax and the administrative surcharge is used to fund expenses associated with the administration of the Missouri Workers’ Compensation law. Section 287.715, RSMo., authorizes the imposition of Second Injury Fund surcharge that shall not exceed three percent. Effective January 1, 2014, Section 287.715.6 RSMo., authorizes the imposition of a Second Injury Fund supplemental surcharge not to exceed three percent. The Second Injury Fund supplemental surcharge may be collected for calendar years 2014 to 2021. The revenue generated by the Second Injury Fund surcharge and the Second Injury Fund supplemental surcharge is used to pay benefit and expense liabilities of the fund. For more information about the functions and services of the Division of Workers’ Compensation and the Second Injury Fund, visit http://labor.mo.gov/DWC/. The Department of Labor and Industrial Relations and the Department of Insurance, Financial Institutions and Professional Registration look forward to working with you in 2016. If you have questions or need additional information, contact the Division of Workers’ Compensation at 800-775-2667 or the Department of Insurance, Financial Institutions and Professional Registration at 800-394-0964.