Online Surcharge Calculation and Collection
An electronic surcharge calculator and payment engine is now available and will afford insurers and self-insured employers the ability to calculate surcharge, file required reports and pay or claim a zero payment due, in the same way you’d renew your license or file for your vehicle registration online.
Surcharge, by definition, offsets the costs of administration of the Colorado workers’ compensation system through funding of the Workers’ Compensation Cash Fund; the Workers’ Compensation Cost Containment Act through its premium cost containment program; and the Major Medical and Subsequent Injury Funds. This is done by levying a surcharge on insurers for workers’ compensation premiums received in the state. In the case of self-insured employers, it is calculated as a surcharge on premium equivalents. Each year the Division Director is required to perform a review to determine the monies needed to operate each of the programs.
To make the whole process easier, the new surcharge application will allow payers to calculate surcharge and save filing information for up to 30 days. Utilizing the calculator should eliminate unnecessary errors. There is also an electronic notary component and/or the ability to upload notarized signatures. Information may also be uploaded as in the case of a self-insured employer of day laborers with multiple job classifications to report. Those who elect to make a surcharge payment online will receive confirmation of payment to ensure timely receipt and proof of compliance.
The next surcharge collection period begins on July 1 and runs through July 31. Payers are encouraged to go online and experience the ease of filing anytime.