Florida Assessments
The Workers' Compensation Administration Trust Fund Assessment (WCATF Assessment)
The WCATF is maintained mostly by annual assessments as well as by the interest that these assessment deposits earn in the State Treasury. The net premiums collected by the workers’ compensation carriers in Florida and the net premium applicable to the self-insurers in Florida (as promulgated by the Division) are the basis for computing the amount to be assessed which is expressed as a percentage of net direct collected premiums. Neither carriers nor self-insurers may deduct any cost of reinsurance. However, carriers may deduct dividends paid and refunds returned to policyholders in a given quarter. Assessments must be paid on deductible policy premium "addbacks" which is the cumulative dollar value of all premium discounts that were applied in connection with any deductible plans written during the reporting quarter. These total premiums are then applied to the current applicable WCATF assessment rate to determine the carrier’s quarterly assessment.
FAQ
- Are the WCATF Assessments required?
- What is the WCATF?
- Who must pay the assessments?
- What does the WCATF provide or pay for?
- What are the bases of the WCATF Assessments?
- Can the WCATF reported premiums and assessments be audited?
- How often is the assessment due?
- What if the assessment is not paid timely?
- How do I pay the required assessment?
- How is the WCATF Assessments Calculated for Carriers?
- How is the WCATF Assessments Calculated for Self-Insurers?
- Who do I contact for questions on assessment rates or on payment of assessments?
Are the WCATF Assessments required?
Yes. The WCATF Assessment is required by Section 440.51, Florida Statutes.
What is the WCATF?
There is established in the Florida State Treasury a special fund to be known as the "Workers' Compensation Administration Trust Fund" for the purpose of providing for the payment of all expenses in respect to the administration of Chapter 440, Florida Statutes. The fund is administered by the Division of Workers’ Compensation.
Who must pay the assessments?
The WCATF is maintained by annual assessments upon all of:
- The insurance companies writing compensation insurance in the state,
- The commercial self-insurers under Sections 624.462, Florida Statutes,
- The commercial self-insurers under Section 624.4621, Florida Statutes,
- The assessable mutual insurers as defined in Section 628.6011, Florida Statutes,
- And the self-insurers under Chapter 440, Florida Statutes.
These assessments shall become due and be paid quarterly as provided in Section 440.51, Florida Statutes, at the same time, and in addition to the SDTF Assessments.
What does the WCATF provide or pay for?
This link shows a pie chart detailing how the funds are required to be allocated under Florida law: Link to Pie Chart
What are the premium bases of the WCATF assessments?
The net premiums collected by carriers plus the discount that had been applied to any deductible plans and the amount of premiums calculated by the division for self-insured employers are the basis for computing the amount to be assessed by the WCATF. When reporting deductible policy premium for purposes of computing assessments, full policy premium value must be reported prior to application of deductible discounts or credits.
Can the Division require additional documentation to support the reported premium?
Yes, the Department may require reports from each carrier in respect to all gross earned premiums.
How often is the assessment due?
Such amounts shall be paid within 30 days from the date that notice is served upon such carrier or 30 days after notification is sent, whichever is later.
What if the assessment is not paid timely?
If such amounts are not paid within the required time period, there may be assessed for each 30 days that the amount so assessed remains unpaid, a civil penalty equal to 10 percent of the amount so unpaid.
If any carrier fails to pay the amounts assessed against him or her under the provisions of this section within 60 days from the time such notice is served upon him or her, the office, upon being notified by the department, may suspend or revoke the authorization to insure compensation in accordance with the procedure in Section 440.38(3)(a), Florida Statutes.
How do I pay the required assessment?
All payment must be accompanied by an invoice obtained through the web-based START System. Your WCATF assessment must be paid at the same time as the SDTF Assessment.
Send payment using US Postal Service Mail:
Division of Workers’ Compensation
Assessment Unit
P.O. Box 7300
Tallahassee, FL 32399-7300
Send payment using Overnight Courier:
Division of Workers’ Compensation
Assessment Unit
200 E Gaines St
Tallahassee, FL 32399-4221
How is the WCATF Assessment Calculated for Carriers?
How is the WCATF Assessment Calculated for Self-Insurers?
Who do I contact for questions on assessment rates or on payment of assessments?
Mark Reichmuth
200 East Gaines Street
Tallahassee, FL 32399-4221
(850) 413-1753
Mark.Reichmuth@MyFloridaCFO.com
