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Topic: WORKER'S COMPENSATION Date Issued: October 28, 1992

CHARGES TO DEPARTMENTS Date Revised:

Section: WORKER'S COMPENSATION

Number: XXI.2.

PURPOSE:

To describe the method for developing the annual charges to departments for

the Workers' Compensation Program.

POLICY:

The annual charge to departments is based 50% on experience and 50% on the

State Manual Rates, which are provided annually by the Workers' Compensa-

tion Rating Bureau of California for those categories of employees working

for public entities.

PROCEDURE:

In January of the prior fiscal year, the Information Services Analyst who

works with the County Payroll System produces a Salary Expenditure Budget

Worksheet showing totals by department for workers' compensation charges

for that fiscal year. These charges are based on the current State Manual

Rates.

Subsequent to the close of the fiscal year, the Risk Management Division of

the Personnel Department calculates the amount paid out in the Workers'

Compensation Program for employees in each department during the preceding

fiscal year. These charges are added to the totals from the four previous

fiscal years. Each department's percentage of the total Workers' Compensa-

tion expenditures over the five-year period is calculated.

The Personnel Accounting Section uses the two sets of data to determine

each department's percentage of the total projected departmental charges

for the Workers' Compensation Program for the upcoming fiscal year. These

figures are provided to departments as part of the budget packet used to

develop departmental budgets for the coming fiscal year.

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PAM-XXI3 RFT A1 10/28/91