How are workers compensation premiums calculated and how are they paid?
The basic premium is a percentage of your payroll. Insurance companies assign all employers with an industry classification based on the description of their trade or business which employers provide on their insurance proposal. The insurance company uses the official classification listing published by WorkCover in the Insurance Premiums Order. At the beginning of each insurance period (known as the “term”), you must provide your insurance company with an estimate of the wages that you’ll pay in the next twelve months. Your insurance company will calculate the premium on the basis of that estimate. If the base premium tariff is more than $3,000 you can pay in three instalments at the end of the first, fourth and eighth months of the policy period. If your premium is less than $3,000 you must pay the whole premium within one month of the date of issue of the assessment notice. At the end of the insurance period, you must provide your insurance company with a declaration of the actual w
