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The Washington State Department of Labor and Industries (L&I) announced a rate holiday reducing workers' compensation rates for the second half of 2007. The rate
holiday was proposed because the L&I has a considerable surplus in their reserve in the workers' compensation system. The majority of this surplus is concentrated in the Medical Aid Fund. Consequently, L&I will pay the Medical Aid Fund
portion of the workers' compensation premium for employers and employees. During the rate holiday, employers should not deduct the Medical Aid Fund portion of the workers' premium. The rate holiday only covers work performed from July 1
through December 31, 2007. As a result, adjustments may need to be made to your payroll deduction system for the final six months of 2007.
Revised rate notices from the L&I were sent in mid-June to each employer providing the temporarily reduced workers' compensation rates. During the holiday, the employee payroll deduction rate is 0.03340 for all risk classes except Drywall
(risk classes 0540, 0541, 0550, 0551) which is 0.00025 and Volunteer (risk classes 6901, 6906) which is 0.0000. The rate holiday is a temporary suspension of premiums paid into the Medical Aid Fund only; employers should continue to pay
the Accident and Supplemental Pension Fund and deduct the employee's share (50%) of the premium paid into the Supplemental Pension Fund.
For more information visit
www.RateHoliday.LNI.wa.gov or contact
Jordan Miller or
Rachel Le Mieux
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