Table A: Payroll Data (Employer I & II) Employee Annual Payroll No. of Employees Payroll Year 1 Payroll Year 2 Payroll Year 3 Clerical/Office Staff (Code 8810) $50,000 20 $1,000,000 $1,000,000 $1,000,000 Sales Staff (Code 8748) $80,000 20 $1,600,000 $1,600,000 $1,600,000 Technicians (Code 8391A) $80,000 23 $1,840,000 $1,840,000 $1,840,000 Service Writers, Parts Counter, Parts and Service Managers (Code 8391B) $85,700 7 $600,000 $600,000 $600,000 Total 70 $5,040,000 $5,040,000 $5,040,000 Table B: Injury Data and Losses Paid Per Injury Year Claim # Employer I Employer II Type of Injury Incurred Losses Type of Injury Incurred Losses Year 1 1 Cut Finger $1 Back Injury $50,000 Year 1 2 Cut Finger $1 Back Injury $7,500 Year 1 3 Broken Finger $10,000 Broken Finger $10,000 Year 1 4 Cut Finger $1 Elbow Sprain $5,000 Year 1 5 Head Injury $5,000 Head Injury $5,000 Year 2 6 Arm Rash $1 Fatality* $175,000 Year 3 7 Back Injury/ Cumulative Trauma $25,000 Back Injury/ Cumulative Trauma $25,000 Year 3 8 Arm Rash $5,000 Arm Rash $5,000 Total $45,004 $282,500 *Death benefits are statutorily limited in certain states. In California, death benefits are capped at $320,000. Only $175,000 is used in this sample calculation. Table C: Estimated Premium Costs Premium Based on Employee Count & Payroll Experience Modification Total 2025 Premiums (before credits) Employer I $264,500 0.85 $224,825 Employer II $264,500 1.51 $399,395 Note 1: Wages and employee count for employees (CA automobile dealership) in Table A are fictitious and used illustratively. Note 2: The Experience Modification in Table C utilizes California rates and formulas. Calculations for other states will vary. Note 3: Table C premiums are before underwriter’s “risk adjustment” debits, credits or premium discounts (if any). A good safety record can earn you discounts from reputable carriers. Conversely, a poor safety record will result in increased premiums. DISCLAIMER: Employers must consult with their WC insurance brokers for a better understanding of their WC premiums and safety consultants for matters related to safety. The contents of this article are for informational purposes only and are not to be considered as legal advice. The premium numbers are for discussion purposes, and actual numbers for X-Mod and premium calculations may vary on a case-by-case basis. Sam Celly of Celly Services Inc. has been helping automobile dealers comply with EPA & OSHA regulations since 1987. Sam received his BE (1984) and MS (1986) in Chemical Engineering, followed by a J.D. from Southwestern University School of Law (1997). Learn more at www.epaoshablog.com. Your comments/questions are always welcome. Please send them to sam@cellyservices.com. 25
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