Tax News Update    Email this document    Print this document  

December 23, 2020
2020-2937

Washington employer workers' compensation rates will not increase for 2021

The Washington Department of Labor & Industries has announced that the average workers' compensation insurance premiums will not increase for 2021. This is the first time in 20 years that workers' compensation rates have dropped or stayed steady for four consecutive years.

Workers' compensation rates fell by 0.8% for 2020, 5% in 2019 and 2.5% in 2018. According to the Department, while financial projections point to the need for a significant increase to cover all costs for injuries and illnesses that occur in 2021, the agency is using funds from the workers' compensations contingency reserve to keep rates from climbing.

Washington is the only state where workers contribute a substantial portion of the premium cost. For 2021, workers will continue to pay on average about 26% of the premium.

Individual employers may see their rates go up or down, depending on their recent claims history and changes in the frequency and cost of claims in their industry.

According to 2021 rate information posted to the Department's website, out of the state's 323 risk classes, 181 would have lower composite rates in 2021.

The Department offers employers a Claim-Free Discount that can lower their average base rate by 10% or more.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

———————————————
ATTACHMENT

EY Payroll News Flash

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement