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The Most Commonly Asked Questions About the CAl/OSHA Targeted Inspection and Consultation Fund (TICF)


Q1.   What is the origin of the TICF Assessment?

The Cal/OSHA Targeted Inspection and Consultation Fund (TICF) is part of the workers' compensation insurance reform legislation passed by the California Legislature in July of 1993. The legal mandate for the assessment is codified at California Labor Code 62.7 and 62.9.

Q2.   Which California employers are subject to a TICF Assessment?

Insured employers with an experience modification rating (ExMOD) of 125% or more. See Labor Code 62.9(b) (1).

Q3.   How often are TICF assessments made?

Annually. The first TICF Assessment was sent in September of 1995. Typically, TICF assessments are mailed to employers in February or March of every year. See Labor Code 62.9(l).

Q4.   Will I be subject to a TICF Assessment each year?

Only if your ExMOD remains 125% or more. Once your ExMOD drops below 125%, you are no longer subject to a TICF assessment.

Q5.   How is the amount of the TICF assessment calculated?

The amount of your assessment is based on your total payroll as reported to your workers’ compensation insurance carrier. The more payroll you have, the more the assessment you pay up to a maximum of $10,000 if you have a payroll of $20 million or more.  California Labor Code Section 62.9 was revised in mid-2008; new changes are in italics as follows:

  
  Workers' Compensation Payroll Range      Assessment Amount
                                            
  Less than $250,000                               $100
     $250,001        to          $500,000          $200
     $500,001        to          $750,000          $400
     $750,001        to        $1,000,000          $600
   $1,000,001        to        $1,500,000          $800
   $1,500,001        to        $2,000,000        $1,000
   $2,000,001        to        $2,500,000        $1,500
   $2,500,001        to        $3,500,000        $2,000
   $3,500,001        to        $4,500,000        $2,500
   $4,500,001        to        $5,500,000        $3,000
   $5,500,001        to        $7,000,000        $3,500
   $7,000,001        to       $20,000,000        $6,700
  $20,000,001    and above                      $10,000

These changes mean the total maximum an employer can be assessed in 2012 is $10,000, rather than $2500, as in years prior to 2009.

See Labor Code §62.9(a).

Q6.   The ExMOD in my Billing Notice doesn't seem accurate. How was it determined?

The ExMOD used was based on relevant data (three years of workers’ compensation loss history) reported to the Workers’ Compensation Insurance Rating Bureau (WCIRB) by your workers’ compensation insurance carrier. If you dispute your ExMOD, please contact your insurance broker or carrier (Or previous insurance carrier if you have changed carriers recently) to verify your ExMOD data.  For the 2012 TICF Assessment, the 2011 policy year ExMOD was used. The 2011 policy year began when your workers' compensation policy was renewed sometime in 2011 (any day from January 1, 2011 through December 31, 2011). For the 2011 ExMOD rating calculation, workers' compensation losses and data from the 2007, 2008, and 2009 policy years in most cases were used.

Q7.   The payroll on my Billing Notice doesn't seem accurate. How was it determined?

The payroll used was reported to the WCIRB by your workers' compensation carrier. The payroll represents the last policy year for which accurate workers' compensation payroll is available from the WCIRB, For the 2012 TICF Assessment, 2009 policy year worker's compensation payroll was used. The payroll listed covers all entities listed under your workers' compensation policy. If you dispute your payroll, please contact your insurance carrier (or previous insurance carrier if you have changed carriers recently) to verify your payroll.

Q8.   What is the TICF Assessment money used for?

The money supports Cal/OSHA's "High Hazard Employer Program" (HHEP). The HHEP provides consultative assistance, free of charge, to employers with high ExMODs to help them decrease their preventable work-related injuries and illnesses and their workers' compensation losses.

Q9.   How can I get HHEP Consultative Assistance?

If you wish to receive HHEP Consultative assistance, please call your nearest Cal/OSHA Consultation Service Area Office listed at http://www.dir.ca.gov/dosh/consultation_offices.html to arrange for assistance.

Q10.   How much time do I have to pay my TICF Assessment?

The law says you must pay the assessment within thirty (30) days from the date of the Billing Notice. See Labor Code 62.9(c) (3).

Q11.   What happens to me if I don't pay my TICF Assessment in 30 days?

You will receive a Notice of Delinquency asking for payment of your TICF Assessment within 15 days from the date of the Notice of Delinquency. If payment is not received in 15 days, your case will be referred to the California Employment Development Department for collection. See Labor Code §62.9(c) (5).

Q12.   If I receive a TICF Assessment for a business that I no longer own, what should I do?

If you've been assessed for a business you no longer own, please fax the worker's compensation termination paperwork to the TICF Fax # (510) 286-7034, along with a copy of your 2012 TICF Assessment Billing Notice. You may also email the information to doshticf@dir.ca.gov.

Q13.   Where do I send my check for the TICF Assessment?

Remit a check made payable to the "Department of Industrial Relations, Fund 096.01" to the following address and be sure to include your Billing Notice Invoice Number on your check to get credit for your payment!

Department of Industrial Relations
Accounting - TICF 096.01
P. O. Box 420603
San Francisco, CA 94142-0603

For other payment options on-line, please visit http://www.dir.ca.gov/dosh/ticf.html.

Q14.   If I have already paid my TICF Assessment and receive a second notice, what should I do?

Please mail or fax a copy of the front and back of your cancelled check for your TICF Assessment to the Cal/OSHA TICF Assessment Unit. The fax number is (510) 286-7034.

Q15.   If I have any more questions about my TICF Assessment, who do I call or email?

If you should have any other questions regarding your TICF Assessment, please contact our Cal/OSHA TICF Assessment Unit at (510) 286-6880 or email the Unit at doshticf@dir.ca.gov.

Q16.   Do I have to pay my assessment now, if we have a dispute regarding either the company's ExMod or the Worker's Compensation Payroll that was reported?

The California Labor Code that mandates the TICF Employer assessment (for insured employers that have an ExMod rate of 125% and more), also levies a 25% late penalty on unpaid assessments.

Please contact your worker’s compensation insurance carrier, as they are the entity that submitted the ownership and WC payroll information to the Worker’s Compensation Insurance Rating Bureau (WCIRB).  They can request a re-evaluation of the WCIRB data.

Our suggestion is to pay the assessment, and then once the revised WCIRB has been given to you, to submit that revised paperwork, along with a signed refund request on company letterhead to fax (510) 286-7034.  The refund process will be initiated upon receipt of the documents.

Q17.   We received a TICF Assessment for a company we just bought. Do we have to pay this assessment?

Normally, when a company is purchased, assets as well as liabilities are included in the purchase. If there are exceptions, they would be documented in the change in ownership documentation. Please fax a copy of the documentation, as well as the TICF Assessment Billing notice to (510) 286-7034 so we can update our records. Also ensure that documentation is provided to the Workers' Compensation Rating Bureau, so that their records can be updated.

Q18.   Our company is a non-profit organization. Do we still need to pay this Assessment?

The California Labor Code mandates the TICF Assessment for all insured employers with an EXMod of 125% or greater.

Please fax over the documentation for your client showing the percentage of federal grant monies received, and percentage of donations, to (510) 286-7034.  Our Associates will review it for possible lowering of the assessment amount.

However, the same Labor Code levies a 25% late penalty on all unpaid assessments, so the suggestion is to pay the assessment.  If it is determined that the assessment should be lower, then a signed request on company letterhead would initiate the refund process.  If you choose not to pay the assessment, the 25% late penalty on the unpaid assessment amount would still be levied.

Q19.   We've had to downsize our company quite a bit during the last 2 years. Do we have to pay this assessment or is it possible to have it decreased?

The California Labor Code mandates this assessment on all insured employers that have an Experience Modification rate of 125% or more.

Since the assessment is based on the Exmod of 125% as a trigger, and then the worker’s compensation (WC) payroll data, as another, then kindly contact your worker’s compensation insurance carrier or the WCIRB (Worker's Compensation Insurance Rating Bureau https://wcirbonline.org/wcirb/) to initiate a re-evaluation of the latest WC Payroll data submitted.

Once you have received the new Rating sheet from the WCIRB, then kindly fax that, together with the original TICF Assessment invoice, to fax (510) 286-7034.

Remember that the California labor Code mandates a 25% late fee on all unpaid assessments, so if the assessment is not paid, then a 25% penalty will apply.

The suggestion is to prepay the assessment, and once the revised information has been sent by the WCIRB to you, fax the revised WCIRB information, along with a copy of the TICF Billing Notice and a signed refund request on company letterhead to (510) 286-7034. The refund process will be initiated with the Accounting Unit.