Effective October 1, 2012 the payroll to be used for sole proprietors, partners of a legal partnership, and members of an LLC who elect to be covered by workers’ compensation insurance in Massachusetts has been raised to $42,700. That is an increase of $1,400 over the $41,300 used for policies effective prior to October 1st.
The $42,700 figure is a flat amount which is determined by using 70% of the State Average Weekly Wage for an entire year. It is used as the payroll for any sole proprietor, partner, or member electing workers’ compensation coverage, in lieu of their actual pay.
As announced by the Workers’ Compensation Rating & Inspection Bureau of Massachusetts, this change only affects new and renewal policies effective on or after October 1, 2012.
Very truly yours,
DeSanctis Insurance Agency, Inc.