N.D. Admin Code 92-01-02-14 - Procedure for penalizing employers accounts for failure to pay premium or failure to submit payroll reports
1. The organization
shall bill each employer for premiums as provided by North Dakota Century Code
chapter 65-04. If an employer has an open account with the organization, the
organization may send to the employer a payroll report on which the employer
shall submit payroll expenditures for the preceding payroll reporting period.
The employer shall provide on the payroll report all information requested by
the organization, including the name, social security number, rate
classification, and gross payroll for each employee. The employer shall submit
an electronic report of payroll information in a format approved by the
organization. The report must be received by the organization by the last day
of the month following the expiration date of the employer's payroll reporting
period. The organization shall consider an unsigned or incomplete submission a
failure or refusal to furnish the report.
2. The organization shall send the first
billing statement to the employer by regular mail to the employer's last-known
address or by electronic transmission. The first billing statement must
identify the amount due from the employer. The statement must explain the
installment payment option. The payment due date for an employer's account is
thirty days from the date of billing indicated on the billing statement. If a
previous delinquency exists on the employer account, the billing statement
indicates a past-due status.
3. If
the organization does not receive full payment or the minimum installment
payment indicated on the billing statement, on or before the payment due date,
the organization shall send a second billing statement.
4. If the minimum installment payment remains
unpaid thirty days after the organization sends the second billing statement to
the employer, the organization shall notify the employer by regular mail to the
employer's last-known address or by electronic transmission that:
a. The employer is in default and may be
assessed a penalty of two hundred fifty dollars plus two percent of the amount
of premium, penalties, and interest in default;
b. The employer's account has been referred
to the collections unit of the policyholder services department; and
c. Workforce safety and insurance may cancel
the employer's account.
5. The organization may extend coverage if
the organization and the employer have agreed in writing to a payment schedule
on a delinquent account. If the employer defaults on the agreed payment
schedule, that employer is not insured.
6. If the employer's payroll report is not
timely received by the organization, the organization shall notify the
employer, by electronic transmission or regular mail addressed to the
last-known address of the employer of the employer's failure to submit the
payroll report. The notification must indicate that the organization may assess
a penalty of up to five thousand dollars against the employer's
account.
7. If the payroll report
is not received by the due date provided by letter from the organization to the
employer, the organization shall assess a penalty of fifty dollars. A second
fifty-dollar penalty is assessed against the employer if the payroll report
remains unsubmitted after an additional fifteen days. The organization shall
notify the employer of the penalty by electronic transmission or regular mail
addressed to the employer's last-known address.
8. At any time after sixty days following the
expiration of the employer's payroll period, when the employer has failed to
submit a payroll report, the organization may bill the employer consistent with
North Dakota Century Code section 65-04-19. An employer whose premium has been
calculated under this subsection may submit actual wages on an employer payroll
report for the period billed and the organization shall adjust the employer's
account unless the organization determines the information submitted by the
employer is unreliable or inaccurate.
9. The organization may cancel an employer's
account which has failed to pay premium owing or failed to submit a payroll
report.
10. If the organization
receives an employer payroll report more than sixty days after the expiration
of the employer's payroll period, the employer's billing statement may show a
past-due premium billing due date. Any employer account billed without benefit
of the employer payroll report may show a past-due billing due date.
11. If the employer does not have an open
account with the organization, the organization shall send the employer an
application for coverage by regular mail or by electronic transmission. The
organization shall notify the employer of the penalties provided by North
Dakota Century Code chapter 65-04 and this section.
12. Upon receipt of an incomplete or unsigned
payroll report, the employer shall submit the completed payroll report within
fifteen days of the organization's request. The organization shall consider an
unsigned or incomplete submission to be a failure or refusal to furnish the
report. If the payroll report is not timely received by the organization, the
organization may assess a penalty of up to five thousand dollars and shall
notify the employer that the employer is uninsured.
Notes
General Authority: ND CC 65-02-08, 65-04-06, 65-04-19, 65-04-33
Law Implemented: ND CC 65-04-33
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