This is an official Workers' Compensation form for the state of Arizona.
Phoenix, Arizona imposes annual taxes on workers' compensation to ensure that employers contribute toward the costs associated with providing benefits to employees who suffer job-related injuries or illnesses. These taxes are primarily designed to fund the state's Workers' Compensation Program and administer claims efficiently. There are several types of annual taxes related to workers' compensation in Phoenix, Arizona. The first is the "Employer Premium Tax," which is levied on all employers who have workers' compensation insurance coverage for their employees. This tax is calculated based on the total payroll of the covered employees and is submitted annually to the Arizona Department of Insurance. Additionally, there is the "Special Fund Assessment" tax, which is an additional contribution made by employers to support a special fund established by the industrial commission. This fund provides additional benefits to workers who have permanent disability or require ongoing medical treatment due to a work-related injury. The assessment is determined as a percentage of the employer's total workers' compensation premiums. Another type of tax related to workers' compensation is the "Second Injury Fund Assessment." This assessment is collected from all employers who purchase workers' compensation insurance in Phoenix, Arizona. The purpose of this tax is to finance benefits provided to workers who have pre-existing disabilities or medical conditions and subsequently experience additional injuries or illness on the job. The assessment is typically a percentage of the workers' compensation premiums paid by the employer. Furthermore, as part of the workers' compensation system, employers are required to make regular contributions to the "Self-Insured Guaranty Fund." This fund is managed by the Arizona Department of Insurance and helps protect workers in cases where self-insured employers fail to meet their financial obligations due to bankruptcy or insolvency. The contributions to this fund are calculated based on a formula determined by the department. It's important for employers in Phoenix, Arizona to understand the various types of annual taxes associated with workers' compensation to ensure compliance with the law. By fulfilling their tax obligations, employers contribute toward the effective functioning of the Workers' Compensation Program, secure benefits for injured workers, and maintain a safe and protected workplace environment.
