Title
Workers Compensation Taxes (Ordinance S-49757)
Description
Request to authorize the City Manager, or his designee, to pay taxes to the Industrial Commission of Arizona for Workers Compensation injuries for the Human Resources Department. Further request authorization for the City Controller to disburse funds related to this item. The aggregate value will not exceed $1,500,000.
Report
Summary
The City has been self-insured for Workers Compensation injuries since 2003 and the taxes are due quarterly based on premiums that would have been paid by an employer if the employer had been fully insured by a Workers Compensation insurance carrier.
The Industrial Commission of Arizona calculates an administrative fund assessment annually for Workers Compensation injuries and computes the quarterly taxes that the City must pay every January, April, July, and October of each calendar year. Additionally, the Industrial Commission of Arizona will refund the City for any overpayment of taxes from the prior year or bill the City for any underpayment. The City will pay these underpayment adjustments annually if needed.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived as a result of an approved Determination Memo citing the Industrial Commission of Arizona as a Special Circumstance - Without Competition.
Term
The payment authorization will begin on July 1, 2023 and end June 30, 2026.
Financial Impact
The aggregate value will not exceed $1,500,000 and the funds are available in the Human Resources Department.
Concurrence/Previous Council Action
- The Phoenix City Council approved Ordinance S-49567-0015 on April 19, 2023.
- The Phoenix City Council approved Ordinance S-49080 on Oct. 26, 2022.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.