Winter 2006

Fixed Payroll for Sole Proprietors, Partners Increases

As of April 22, 2006, limited partners can exclude themselves from workers’ comp coverage by policy endorsement. If they choose to be covered, the insurance carrier must charge them based on the fixed annual payroll. Effective October 1, 2006, the fixed annual payroll for covered partners and sole proprietors increased from $35,100 to $43,800.

Fixed payroll is based on the average weekly wage set by the Texas Department of Insurance, Division of Workers’ Compensation. As of October 1, 2006, the average weekly wage for fiscal year 2007 is $673.80, and it is subject to change on October 1, 2007.

The formula for calculating sole proprietors and partners’ payroll, per the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers’ Compensation and Employers’ Liability Insurance, Rule V.F.3b, is: Texas Average Weekly Wage x 1.25 x 52, rounded to the nearest $100.

MUTUAL INTERESTS - Winter 2006
What Your Clients Get for Their Texas Mutual Premium
Texas Mutual Introduces New Purchasing Groups
Purchasing Groups Earn Dividends
Fixed Payroll for Sole Proprietors, Partners Increases
Ken's Corner

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