Assessments
Self-Insurance Plus, the IWCC's public web portal.
Self-Insurance Plus allows for filing and processing of assessments completely electronically. Electronic filing increases efficiency for the IWCC and those who rely on it by facilitating faster processing, providing continual access, and reducing storage and mailing costs.
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Assessment payments can be made by check or electronic payment (ePAY).
IWCC Operations Fund
Illinois Compiled Statutes, Ch. 820, Para. 305, Sec. 4d; Ch. 215, Para. 5, Sec. 416
Purpose
The IWCC Operations Fund was created in 2003 to pay for the administrative costs of the agency. Illinois became the 46th state in the country that funds the w.c. agency's administrative expenses through an assessment of some kind.
Assessment
Insurance carriers: Each year, the Illinois Department of Insurance (IDOI) collects a 1.092% surcharge on workers’ compensation insurance premiums from insurance carriers. It sends out an assessment letter each July. Payment by check to the IDOI is due 30 days after the assessment is sent.
Private Self-insured employers: Each year, the IWCC collects an assessment of .0081% of payroll from self-insured employers.
Penalty for nonpayment
If the employer fails to pay the fee on time, it shall pay the greater of $1,000 or 5% of the deficiency for each month or part of a month that the deficiency remains unpaid. The Commission does not have the ability to waive part or all of the penalty. Please remit payment as soon as possible to stop the accrual of penalties.
Surcharge Settlement
Contacts
For insurance carriers' questions: Doug Hollis, IL Dept. of Insurance - 217-782-0055.
For self-insurers' questions about payment method/history: Paul Fichtner, IWCC Fiscal Office - 312-814-1606
For self-insurers' questions on the time period of self-insured status, payroll amount listed on the bill, or to update contact information: Maria Sarli-Dehlin, IWCC Self-Insurance Office - 312-814-6065, or Jean Cannon, IWCC Self-Insurance Office - 217-782-6330.
Rate Adjustment Fund
Illinois Compiled Statutes, Chapter 820, Paragraph 305, Sections 7-8
Purpose
The Rate Adjustment Fund was created in 1975 to pay cost-of-living increases to individuals who are either permanently and totally disabled or the survivors of fatally injured workers. Individuals who receive awards for permanent and total disability or death benefits are eligible. Benefits are paid each month, beginning on July 15 of the second year after the award is entered by the Commission. Recipients are given an amount equal to the percentage increase in the statewide average weekly wage, as calculated by the Department of Employment Security.
Assessment
Twice each year, self-insured employers, insurance companies, and governmental units pay 1.375% of all compensation payments, excluding hospital, surgical, or rehabilitation payments, made in the six-month period preceding the payment date. The Rate Adjustment and Second Injury assessment form and cover letter are made available each February and August. Assessments are to be viewed and completed via the Self-Insurance Plus (SIP) Online Portal. Payment is due each March 15 and September 15 by check or electronic payment (ePAY).
Payment of the assessment is required until official approval to cease payment is given as follows:
Self-insured employers: If a self-insured company terminated its self-insurance privilege, ceased doing business in Illinois, filed for reorganization, or was acquired by or merged into a conventionally insured company, it will continue to be assessed until all workers' compensation claims have been resolved and the statute of limitations has expired. The company is required to return the assessment form to the Commission until the Commission has confirmed that all workers' compensation claims have been resolved. If you believe your self-insured company should no longer be assessed, please contact Maria Sarli-Dehlin, IWCC Self-Insurance Division, at 312-814-6065.
By law, every February and August, the Commission examines the fund balance. If the fund balance is above $4 million, then the assessment is cut in half. If the balance is above $5 million, then the assessment will not be made. If the balance falls below $3 million, the full assessment will be reinstated.
Penalty for nonpayment
If an employer knowingly and willfully fails to make timely payment, the Commission shall impose a penalty equal to 20% of the amount due or $2,500, whichever is greater.
Contacts
Paul Fichtner, IWCC Fiscal Office - 312-814-1606
Second Injury Fund
Illinois Compiled Statutes, Chapter 820, Paragraph 305, Sections 7-8
Purpose
First established in the 1950s, the Second Injury Fund provides an incentive to employers to hire disabled workers. Illinois' SIF is more narrowly constructed than most other states. If a worker who had previously incurred the complete loss of a member or the use of a member (one hand, arm, foot, leg, or eye) is injured on the job and suffers the complete loss of another member so that he or she is permanently and totally disabled (PTD), the employer is liable only for the injury due to the second accident. The fund pays the amount necessary to provide the worker with a PTD benefit.
Assessment
Insurers and self-insured employers pay assessments up to 1/8 of 1% of compensation payments, excluding hospital, surgical, or rehabilitation payments, made in the six-month period preceding the payment date.
By law, every January and July, the Commission examines the fund balance. If the fund balance is $500,000, then the assessment is cut in half. If the balance is $600,000, then the assessment will not be made. If the balance falls to $400,000, the half-assessment will be reinstated; if it drops to $300,000, the full assessment will be reinstated.
Penalty for nonpayment
If an employer knowingly and willfully fails to make timely payment, the Commission shall impose a penalty equal to 20% of the amount due or $2,500, whichever is greater.
Contacts
Paul Fichtner, IWCC Fiscal Office - 312-814-1606
Self-Insurers Security Fund
Illinois Compiled Statutes, Chapter 820, Paragraph 305, Sections 4a-5, 4a-7
Purpose
The Self-Insurers Security Fund was created in 1986 to pay benefits to employees of private self-insurers that became insolvent after 1986.
Assessment
Self-insured employers pay assessments based on their compensation payments, up to a maximum of 1.2% of compensation payments, excluding hospital, surgical, or rehabilitation payments, made during the preceding year.
Assessments are sent out at the direction of the Self-Insurers Advisory Board. Payment is due within 30 days by check or electronic payment (ePAY).
Penalty for nonpayment
Penalties are handled through the circuit court.
Contacts
Maria Sarli-Dehlin, IWCC Self-Insurance Division - 312-814-6065