Which option describes the relationship between non-self-insured employers and premium assessments?

• A. Non-self-insured employers are exempt from premium assessments
• B. Non-self-insured employers must participate in premium assessments
• C. Non-self-insured employers do not have to participate if they have small payroll
• D. Non-self-insured employers are only subject to tax once a year

Answer: (B)

The main idea here is that workers’ compensation is funded through employer premiums. If an employer is not approved to self-insure, they fall into the standard premium assessment system and must participate, contributing based on payroll and classification to fund benefits for injured workers. Exemptions for small payroll don’t apply, since coverage and premium obligations are tied to having employees, not the size of the payroll. Premiums are not taxes and aren’t only charged once a year; they’re ongoing obligations that reflect your payroll and risk classification. So the correct relationship is that non-self-insured employers must participate in premium assessments.