BWC cancels coverage when no monies are due
Normally, I don’t like to insult the BWC. I’ve been working with it since 1981, and it has made terrific improvements. The people who work there are generally knowledgeable and helpful.
But here’s a situation with sole proprietors and partners that is ridiculous, unfair, and a complete waste of time.
As background, you should know that, when calculating premiums, sole proprietors and partners who have elected coverage for themselves have to report a weekly minimum payroll. The amount of the weekly minimum payroll is printed on the back of the Payroll Report that is sent out every six months. You multiply the weekly minimum payroll times 26 weeks, multiply that times the premium rate, and then pay that premium amount to the BWC. You report that supplemental coverage payroll on a separate line on the Payroll Report.
There are two exceptions to the above background: You have to pay at least $50 every six months even if the premium you calculated is less than that. And, if you pay online, the BWC doesn’t send a Payroll Report, it sends you a postcard reminding you to pay online.
Nowhere on the webpage where you calculate your premiums does the BWC indicate how much the weekly minimum is. So, you have no idea whether it has changed since the last time you paid.
Now here’s the really nutty part: if you don’t REPORT the correct minimum amount, the BWC CANCELS YOUR SUPPLEMENTAL COVERAGE. It doesn’t matter if reporting the correct amount is STILL less than $50 and you’ve paid $50. Cancelling the coverage means that the sole proprietor or partner will not be covered in the case of a work related injury.
Adding insult to injury, the sole proprietor or partner has to REAPPLY for supplemental coverage.
If a corporation doesn’t report the correct payroll, the BWC does not cancel coverage. When an audit reveals incorrect payroll reporting, the corporation gets an invoice and 30 days to pay. Why are sole proprietors and partners singled out for minimum payroll reporting and cancellation without notice?
Here’s an easy fix: make sure that the online box for supplemental coverage payroll cannot show less than 26 weeks times the minimum weekly amount. The BWC could also put the new minimum weekly amount in BOLD on the reminder postcard.
One final thought: if I don’t reapply for supplemental coverage, will the BWC automatically refund the $50 premium already paid, or would I have to ask for it?