Payroll Services Medical Aid / Worker's Compensation

Department of Labor and Industries

Industrial Insurance

Every pay cycle you work there is a deduction and contribution for Medical Aid / Worker’s Compensation. This deduction and contribution is remitted to the State Department of Labor and Industries. This money resides in a benefit pool which is used to pay employees who have suffered from on the job accidents.

This deduction and contribution vary per pay cycle. The reason for the variance is because the calculation (rate) is based on the number of hours worked in each pay cycle. There is no additional deduction once the number of hours worked in the month exceed one hundred and sixty (160) hours.

The hourly rate for this calculation changes at least annually. Payroll Services always provides a message on your earnings statement when we have been instructed to change the rate. The current deduction rate is $0.1009 per hour, with a maximum monthly deduction of $16.14. The current contribution rate is $0.2382 per hour, with a maximum monthly contribution of $38.11.

The reason for the frequent rate change is because of the experience rating on our benefit pool. The more injuries, the higher the cost, while the less injuries, the lower the cost.