The Texas Department of Insurance announced that the Division of Workers’ Compensation (DWC) has lowered the maintenance tax rate to 1.543 percent of gross premiums collected by workers’ compensation insurance carriers from Jan.1, 2013 through Dec. 31, 2013.
The maintenance tax supports the operations of the DWC and the Office of Injured Employee Counsel. The DWC said the new rate is the lowest since 2010.
The maintenance tax rate applies to insurance companies writing workers’ compensation policies in Texas and is capped at 2 percent of gross premiums collected by insurance companies.
Certified self-insured and group self-insured employers also pay maintenance taxes based on the previous year’s claim liabilities and expenses.