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FOR MORE INFORMATION CONTACT: Tammy Cavender (573)
751-7500
FOR IMMEDIATE RELEASE: November 7, 2006
Workers’ Compensation Administrative Tax Only 1%; Second Injury Fund Surcharge Unchanged
Jefferson City - The Missouri Department of Labor and Industrial Relations’ Division of Workers’ Compensation announced the administrative tax placed on workers’ compensation insurance premiums will be one percent for calendar year 2007. The surcharge that funds benefits from the second injury fund will remain three percent, down from three and a half percent in calendar year 2005. Senate Bill 1 and 130 passed during the 2005 legislative session assured the second injury fund surcharge would not exceed three percent.
“State statutes call for adjustments in taxes to ensure enough funds are available to administer the workers’ compensation program,” said Rod Chapel, director of the Missouri Department of Labor and Industrial Relations. “This is a routine change that will allow the Division of Workers’ Compensation to continue offering a vital service to Missourians.”
Under Missouri law, the state is statutorily required to assess a workers’ compensation tax, an administrative surcharge and a second injury fund surcharge. The revenue from the workers’ compensation tax and the administrative surcharge is used to fund expenses associated with administering the workers’ compensation program. The revenue generated by the second injury fund surcharge is used to pay benefits to injured workers who had previous disabilities.
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Information and Planning · 421 East Dunklin
· P.O. Box 504 · Jefferson City, MO
65102-0504
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