Ariz. Admin. Code § R20-5-1536 - Fixed Premium Plan; Eligibility; Formula; Necessary Information

A. Except as provided in R20-5-1539, a Self-Insurer shall use a Fixed Premium Plan for purposes of premium taxes required under A.R.S. §§ 23-961 and 23-1065 if the Self-Insurer's annual net taxable premium does not exceed $100,000.

B. Except as provided in R20-5-1539, a Self-Insurer may elect to use a Fixed Premium Plan for purposes of premium taxes required under A.R.S. §§ 23-961 and 23-1065 if the Self-Insurer's annual net taxable premium exceeds $100,000.

C. The Division shall calculate the net taxable premium under a Fixed Premium Plan as follows: [(payroll multiplied by the applicable Payroll Classification Rate) multiplied by (1 minus the Deviation Rate)] less premium discounts.

D. The Fixed Premium Plan applies only to operations and payroll in Arizona. The Self-Insurer shall combine all operations in Arizona to calculate the premium taxes required under A.R.S. §§ 23-961 and 23-1065.

E. A Self-Insurer shall provide the following in support of using a Fixed Premium Plan:

1. Completed Annual Payroll Report Form for the current tax year;

2. Completed Annual Medical Report Form for the current tax year;

3. Completed Annual Injury Report Forms for current and prior three tax years; and

4. Completed Quarterly Tax Payment Form.

Notes

Ariz. Admin. Code § R20-5-1536

New section made by final rulemaking at 28 A.A.R. 3435, effective 10/5/2022.