Title
Workers' Compensation Taxes (Ordinance S-52718) - Citywide
Description
Request to authorize the City Manager, or the City Manager's designee, to pay taxes to the Industrial Commission of Arizona (ICA) for Workers' Compensation injuries for three years. Further request authorization for the City Controller to disburse all funds related to this item. The aggregate value will not exceed $2,100,000.
Report
Summary
The City has been self-insured for Workers' Compensation injuries since 2003. 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 ICA 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 ICA 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 applicable.
Financial Impact
The aggregate value for three years is estimated at $2,100,000 based on the assessed taxes over the past three years. Funds are available in the Workers' Compensation Trust.
Concurrence/Previous Council Action
- Phoenix City Council approved Ordinance S-49757 on May 31, 2023.
- Phoenix City Council approved Ordinance S-49567-0015 on April 19, 2023.
- Phoenix City Council approved Ordinance S-49080-0015 on October 26, 2022.
Department
Responsible Department
This item is submitted by Deputy City Manager David Mathews and the Human Resources Department.