Ariz. Admin. Code § R20-5-1538 - Guaranteed Cost Plan; Eligibility; Formula; Necessary Information
A. Except as
provided in R20-5-1539, a Self-Insurer may elect to use a Guaranteed Cost 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.
B. The Division shall
calculate the net taxable premium under a Guaranteed Cost Plan, using the most
recent year's data, as follows: [(payroll multiplied by the Payroll
Classification Rate) multiplied by (the Experience Modification Rate specific
to Arizona) multiplied by (1 minus the Deviation Rate)] less premium
discounts.
C. The Guaranteed Cost
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.
D. The Experience Modification Rate specific
to Arizona for purposes of determining the net taxable premium under a
Guaranteed Cost Plan shall be calculated in the manner described in
R20-5-1534(C). If the Division cannot calculate an Experience Modification Rate
in the second and all following tax years because the Self-Insurer does not
have any injuries, the Experience Modification Rate shall be set at
1.00.
E. A Self-Insurer shall
provide the completed forms required by R20-5-1536(E) in support of using a
Guaranteed Cost Plan.
Notes
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