The workers' compensation process begins when a State Accident Fund premium auditor contacts the policyholder and requests information to determine an estimated premium. The exact time when this contact is made varies, depending on the type of policy. State agencies are issued fiscal year policies, July 1 to June 30. Cities, counties, and municipalities are issued calendar year policies, January 1 to December 31.

The Premium Unit will send a "Policyholder's Estimated Payroll Report", State Accident Fund Form 310, to each policy holder requesting the following information to determine the estimated workers' compensation premium:

1. The total number of employees in each job class.
2. The NCCI Workers' Compensation Classification Code.
3. A brief job description.
4. The estimated gross payroll for each job class (including any expected increases.)
5. The total overtime pay per job class.

Detailed instructions on how to complete the report can be found on the back of the form.

If an organization has volunteer employees which they elect to cover under their policy, they must complete an additional, "Policyholder's Volunteer Employee Report".

Technical schools, as well as state-supported colleges and universities which have students engaged in off-campus work-study, distributive education, or apprentice programs, must submit a completed State Accident Fund Form320, "Student Payroll Report Form".

All payroll reports will specify a "return deadline."

If the required payroll information is not submitted in a timely fashion, the State Accident Fund will use the previous year's actual payroll and add 25 percent to determine the estimated premium.

The estimated payroll for each classification is divided by 100 and multiplied times the rate to calculate the manual premium for each job classification. The sum of all job classifications equals the total manual premiuim.

The next step in the process is to adjust the manual premium based on historical data. The number used in this adjustment is commonly referred to as your Experience Modifier or E-Mod. The E-Mod is determined by analyzing the number of claims and amount paid (loss) for a three-year period preceding the previous fiscal year. When determining your Experience Modifier for Fiscal Year 98/99, we use claim information form Fiscal Years 96/97, 95/96, and 94/95 (Note: Calendar years are used to calculate the E-Mod for cities and counties.). The manual premium is multiplied by the Experience Modifier (E-Mod) to determine your estimated premium. If you need additional information on how Experience Modifiers are determined, please contact the Policyholder Services Unit Manager at (803) 96-5856.

To determine your actual premium, the State Accident Fund will audit your account. Audits are normally done within 90-180 days after the end of the policy period. The State Accident Fund will send you a blue form, SAF Form 310, Policyholder's Actual Payroll Report. You are required to submit your actual gross payroll along with the other items listed on the form. Cities and counties will submit a copy of their W-3; schools will submit Form 6559 or Form 941; state agencies are subject to verification by the Comptroller General's report. If the required payroll information is not submitted in a timely fashion, the State Accident Fund will use the previous year's actual payroll and add 25 percent to determine the actual premium. After receiving this information, the auditors will go through the same process used to determine your estimated premium, using your actual gross payroll. Based on the difference between your estimated and your actual premium, you will receive either a credit or a debit.

The South Carolina Department of Insurance approved deductible premium credits for workers' compensation insurance policies, effective July 1, 1996. Deductibles are available for medical and indemnity (lost time) benefits in amounts of $100, $200, $300, $400, $500, $1000, $1500, and $2000.

A special premium discount is available for policyholders who establish a qualifying workplace substance abuse prevention progra, to include random drug testing of all employees. If you have any questions on deductibles or the Drug and Alcohol_free Workplace program, please call (803) 896-5800, or toll-free (800) 521-6576.