Executive officers of a corporation covered under a policy have the same status as the employees covered under the policy. Premium is based on their total payrolls, and must fall between certain minimum and maximum payroll amounts that are established each year. For example, effective March 1, 2018, the minimum individual remuneration for an executive officer is $44,200 per year and the maximum is $171,600. Previously, effective March 1, 2017, the minimum individual remuneration for an executive officer was $41,600 and the maximum was $166,400.
The payroll of an executive officer is to be assigned to the classification that applies to the principal operations in which the executive officer is engaged.
If an officer elects to be excluded from coverage, ClearPath Mutual requires a copy of the Form 4 that is on file with the Department of Workers' Claims. To obtain a Form 4, contact the Department of Workers' Claims, Enforcement Division, at 800-731-5241.
Partners, Sole Proprietors, Members of LLC
Ordinarily, partners, sole proprietors, and members of limited liability companies are excluded from coverage. However, they can be covered, and if so, they have the same status as other covered employees. The premium is based on an annual payroll amount that is established each year. For example, effective March 1, 2018, the payroll amount is $43,400. Previously, effective March 1, 2017, the payroll amount was $41,500. The established payroll amount is used in calculating premium regardless of whether the individual's actual earnings are more or less than the established amount.
If your company adds a new operation or class that is not on your original payroll schedule, please contact your agent to determine the new payroll classifications and rates. This will avoid a large audit billing or overpayment of premium.
Start or Buy a Company
If you start or buy a new company, you must have your agent contact ClearPath Mutual to see if it can be added to your policy.