Section 92-01-02-14 - Procedure for penalizing employers accounts for failure to pay premium or failure to submit payroll reports1. The organization shall bill each employer for premiums as provided by North Dakota Century Code chapter 65-04. If an employer has an open account with the organization, the organization may send to the employer a payroll report on which the employer shall submit payroll expenditures for the preceding payroll reporting period. The employer shall provide on the payroll report all information requested by the organization, including the name, social security number, rate classification, and gross payroll for each employee. The employer shall submit an electronic report of payroll information in a format approved by the organization. The report must be received by the organization by the last day of the month following the expiration date of the employer's payroll reporting period. The organization shall consider an unsigned or incomplete submission a failure or refusal to furnish the report.2. The organization shall send the first billing statement to the employer by regular mail to the employer's last-known address or by electronic transmission. The first billing statement must identify the amount due from the employer. The statement must explain the installment payment option. The payment due date for an employer's account is thirty days from the date of billing indicated on the billing statement. If a previous delinquency exists on the employer account, the billing statement indicates a past-due status.3. If the organization does not receive full payment or the minimum installment payment indicated on the billing statement, on or before the payment due date, the organization shall send a second billing statement.4. If the minimum installment payment remains unpaid thirty days after the organization sends the second billing statement to the employer, the organization shall notify the employer by regular mail to the employer's last-known address or by electronic transmission that: a. The employer is in default and may be assessed a penalty of two hundred fifty dollars plus two percent of the amount of premium, penalties, and interest in default;b. The employer's account has been referred to the collections unit of the policyholder services department; andc. Workforce safety and insurance may cancel the employer's account.5. The organization may extend coverage if the organization and the employer have agreed in writing to a payment schedule on a delinquent account. If the employer defaults on the agreed payment schedule, that employer is not insured.6. If the employer's payroll report is not timely received by the organization, the organization shall notify the employer, by electronic transmission or regular mail addressed to the last-known address of the employer of the employer's failure to submit the payroll report. The notification must indicate that the organization may assess a penalty of up to five thousand dollars against the employer's account.7. If the payroll report is not received by the due date provided by letter from the organization to the employer, the organization shall assess a penalty of fifty dollars. A second fifty-dollar penalty is assessed against the employer if the payroll report remains unsubmitted after an additional fifteen days. The organization shall notify the employer of the penalty by electronic transmission or regular mail addressed to the employer's last-known address.8. At any time after sixty days following the expiration of the employer's payroll period, when the employer has failed to submit a payroll report, the organization may bill the employer consistent with North Dakota Century Code section 65-04-19. An employer whose premium has been calculated under this subsection may submit actual wages on an employer payroll report for the period billed and the organization shall adjust the employer's account unless the organization determines the information submitted by the employer is unreliable or inaccurate.9. The organization may cancel an employer's account which has failed to pay premium owing or failed to submit a payroll report.10. If the organization receives an employer payroll report more than sixty days after the expiration of the employer's payroll period, the employer's billing statement may show a past-due premium billing due date. Any employer account billed without benefit of the employer payroll report may show a past-due billing due date.11. If the employer does not have an open account with the organization, the organization shall send the employer an application for coverage by regular mail or by electronic transmission. The organization shall notify the employer of the penalties provided by North Dakota Century Code chapter 65-04 and this section.12. Upon receipt of an incomplete or unsigned payroll report, the employer shall submit the completed payroll report within fifteen days of the organization's request. The organization shall consider an unsigned or incomplete submission to be a failure or refusal to furnish the report. If the payroll report is not timely received by the organization, the organization may assess a penalty of up to five thousand dollars and shall notify the employer that the employer is uninsured.N.D. Admin Code 92-01-02-14
Effective June 1, 1990; amended effective January 1, 1994; January 1, 1996; May 1, 2002; March 1, 2003; July 1, 2006; April 1, 2009; July 1, 2010.Amended by Administrative Rules Supplement 2016-360, April 2016, effective 4/1/2016.Amended by Administrative Rules Supplement 367, January 2018, effective 1/1/2018.Amended by Administrative Rules Supplement 376, April 2020, effective 4/1/2020.Amended by Administrative Rules Supplement 2021-383, January 2022, effective 1/1/2022.General Authority: ND CC 65-02-08, 65-04-06, 65-04-19, 65-04-33
Law Implemented: ND CC 65-04-33