Keeping payroll estimates and operational information up to date
Because of COVID, a number of employers reduced their payroll estimates.
The economic recession and other events of the past year have had a significant impact on payroll for many businesses. Our agency partners have played a critical role in ensuring we have accurate payroll estimates for our customers on installment billing plans so that premium can be calculated and charged correctly.
As an example, a restaurant that temporarily closed due to the pandemic may have reduced payroll estimates significantly. If payroll estimates are not increased when their operations resume, it could result in a significant amount of premium due when payroll is reconciled at year end. It could also result in their renewal payroll and billing being out of alignment with actual operational expectations.
Please continue to keep us up to date on significant changes affecting policyholders' payroll or operations including:
- Reduced or increased payroll
- Changes to operations or products and services being offered
Additionally, many policyholders reduced payroll estimates during the past year, so as their policies come up for renewal, it will be important that you provide SAIF with accurate payroll estimates for the future year so that premium and billing plans can be adjusted accordingly. We welcome policy updates at any point during the year, but please continue to provide updated renewal payroll estimates 45 days prior to renewal whenever possible, to ensure policies are being issued using the most accurate premium estimates available.
Please reach out directly to the service center or your region underwriter with any significant changes that may impact a policyholder's renewal.
*Note: Beginning with the June 1, 2020, renewals, the 6.2% renewal payroll inflation factor was reduced to 0%. This factor was in place to account for projected wage growth, reflecting the historical average growth for SAIF policyholders. We are in the beginning stages of evaluating reinstatement of an inflation factor and will let you know when we decide to make a change in the future.