Flash Report: Department Wants Workers Comp Deductibles Taxed

By: Workers' Comp Executive - The journal of record for the workers' comp community in California.

The California Department of Insurance Feb. 25 informed workers comp carriers in the state that they are subject to premium taxation on deductible payments they receive from employers.Not only does the DOI say that they expect the taxes to be reflected in insurers 2001 tax returns, but it also wants insurers to pony up premium taxes on deductibles for the years 1997 through 2000.The memo, sent to insurers writing workers comp in California, has the industry up in arms and it could r

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