FOR IMMEDIATE RELEASE
April 10, 2006
The Commission on Health and Safety and Workers' Compensation Announces Release of Issue Paper on Tax Status of Self-Insured Groups
The Commission on Health and Safety and Workers' Compensation (CHSWC) is pleased to announce the release of Issue Paper on Tax Status of Self-Insured Groups (SIGs) with circulation to the public for feedback. This paper was prepared at the request of Assembly Member Abel Maldonado.
Self-Insured Groups (SIGs) have formed under Labor Code Section 3700 et seq. SIGs are an established and increasingly available alternative for employers to comply with the obligation to secure the payment of compensation; therefore, it is important to evaluate unexpected tax consequences and potential effects of a change in tax status of SIGs. The CHSWC Issue Paper evaluates issues of contributions, reserves, taxation and the possible need for tax exemption for SIGs, as well as proposes recommendation to changes in the tax structure of SIGs.
CHSWC, created by the workers' compensation reform legislation of 1993, is charged with overseeing the health and safety and workers' compensation systems in California and recommending administrative or legislative modifications to improve their operation. CHSWC was established to conduct a continuing examination of the workers' compensation system and of the state's activities to prevent industrial injuries and occupational diseases and to examine those programs in other states.
Information about CHSWC may be accessed on the Internet at CHSWC's home page at www.dir.ca.gov/chswc. Information may also be obtained by writing to CHSWC at 1515 Clay Street, Suite 901, Oakland, California, 94612, by calling (510) 622-3959, by faxing a request to (510) 622-3265, or by email at firstname.lastname@example.org.