On July 2, 2018, the California Department of Insurance released an order requiring workers’ compensation insurers to report their federal income tax savings incurred under the Tax Jobs and Cuts Act of 2017.
By December 31, 2018, and on a yearly basis through December 31, 2020, workers’ compensation insurers must make a rate filing through the System for Electronic Rates and Forms Filing (SERFF) to report the dollar amount of their tax savings. To supplement the report, an insurer must provide a detailed calculation of the tax saving impacts on the insurer’s rates. If an insurer incurs no rate impact, the insurer must provide a detailed explanation stating why the reduction in the federal corporation tax rate does not affect their rates.
For any questions or updates regarding the California federal income tax report, or any other reporting requirements, please contact Westmont Associates, Inc.