W-2 Phishing Scam – New Potential Risk to Nonprofits – Be Aware!!

It has come to our attention that there has been a recent increase in attempts of phishing scams involving W-2 forms in nonprofit, schools and other human services organizations.  

Rancho Mesa cautions any business, but particularity organizations in these sectors, to be very cautious if they receive any emails requesting information regarding W-2 forms, earning summaries or any other employee sensitive information.  In many cases these emails look like they originated from a high level employee and are sent to other high level, human resources or payroll department employees.

We have included a link to the most recent release from the IRS concerning this issue.  Please review it and call us if you have any questions.

Dangerous W-2 Phishing Scam Evolving; Targeting Schools, Restaurants, Hospitals, Tribal Groups and Others
Published February 2, 2017
www.irs.gov/uac/dangerous-w-2-phishing-scam-evolving-targeting-schools-restaurants-hospitals-tribal-groups-and-others

Court Case Endangers State Workers' Comp System

Seal of the Supreme Court of California

The Independent Insurance Agents & Brokers of California's (IIABCal) Legislative Update, a compilation of reports produced by IIABCal Lobbyist John Norwood of Norwood & Associates, recently published an update on the possible effects of a court case on the Workers' Compensation System.

Below is an excerpt from the February 6, 2017 Legislative Update article:

The California Chamber of Commerce recently filed a friend-of-the-court brief in a California Supreme Court case that will determine whether doctors who review workers' comp cases can be sued for certain medical decisions. 

The brief in King v. CompPartners, Inc argues that the appellate court incorrectly found that utilization review doctors - those who look at records to decide whether a worker's treatment was appropriate, but do not examine the patient personally - have established a physician-patient relationship and therefore owe a duty of care to the injured workers.

Major Implications
If allowed to stand, the decision will create extensive future litigation and can be expected to increase costs that will put upward pressure on malpractice premium rates for all physicians, and have a chilling effect on utilization review physicians, according to the CalChamber. 

Establishing potentially unlimited liability for utilization review physicians will potentially lead to higher premiums for employers and could drive future and existing business away from California. 

The case also will determine whether medical malpractice claims against utilization review doctors are barred, because all workers' compensation claims are under the purview of the state Division of Workers Compensation. National and statewide insurer groups joined the CalChamber on the brief. 
 

Cal/OSHA 300A Posting Begins February 1st

Cal/OSHA Form 300A

Rancho Mesa Insurance Services, Inc. would like to remind its clients that February 1, 2017 marks the start of the Cal/OSHA Form 300A posting period.  The Cal/OSHA Form 300A is a summary of the company's annual work-related injuries and illnesses.  It must be posted from February 1, 2017 to April 30, 2017.

Who is required to post the Cal/OSHA 300A Form?
Employers with at least 11 employees must post the Cal/OSHA 300A form (though, there are some exemptions for low-hazard industries).

Where must the Cal/OSHA Form 300A be posted?
The Cal/OSHA Form 300A Form must be posted in a conspicuous place within the workplace that is readily available to employees.  Employers must also send copies to employees who do not regularly visit the workplace, at least on a weekly basis, where the Cal/OSHA Form 300A form is posted.

Do I need to post the Cal/OSHA Form 300A if we have no work-related injuries or illnesses?
Yes, employers must complete and post the Cal/OSHA Form 300A form even if they have no work-related injuries or illnesses to report.

How do I complete the OSHA Form 300A?
Through Rancho Mesa's Risk Management Center, clients can generate the Cal/OSHA Form 300A using the incident tracking feature, within the system.  The form may also be printed and manually completed.

View the Cal/OSHA Form 300A.

Visit www.dir.ca.giv/dosh/etools/recordkeeping/index.html for more information.

California Workers Compensation 2017 Annual Officer Payrolls Minimums and Maximums, Assessment Rates, and Dual Wage Thresholds Announced by WCIRB

ICW Group Insurance Company, the largest group of privately held insurance companies domiciled in California, recently released an announcement that outlines the details of
California Workers Compensation 2017 Annual Officer Payrolls Minimums and Maximums, Assessment Rates, and Dual Wage Thresholds.  The document is available for your review.

For any questions concerning the changes, please contact your Rancho Mesa service team.

"2017 Annual Officer Payrolls, CA Assessemnt Rates & Duel Wage Threshold." Insurance Company of the West. 

AB 2883: Change in California Workers Compensation Law

AB 2883 Change in California Workers Compensation Law- Officer, Director, Partner, LLC Member Exclusions Effective January 1, 2017

Earlier this year, we reached out regarding California Assembly Bill 2883 (AB 2883), which drastically changed the legal requirements that allow an employer to exclude its corporate officers and the members of its board of directors from workers' compensation insurance coverage. As a result, this change will now affect ALL policies inforce as of January 1, 2017.

Below are key details to note:

• A Corporate Officer/Director must own 15% or more of the corporation’s issued and outstanding stock to be eligible to elect exclusion from WC coverage.
• A General Partner of a Partnership, or a Managing-Member of a LLC, is eligible to elect exclusion from the WC policy (Note – the 15% ownership requirement does not apply to General Partners and Managing Members).
• Grantors of Revocable Trusts are no longer deemed shareholders and are no longer eligible for exclusion.
• Each eligible Corporate Officer/Corporate Director/General Partner/Managing-Member must sign a new waiver attesting to his/her qualification to be excluded, under penalty of perjury. The new waiver(s) will replace any current Exclusion Letter.
• AB 2883 has eliminated the requirement that 100% of the stock must be held by titled Officers/Directors in order for a Corporate Officer/Director to be eligible for exclusion.

What next?

You will receive notification from your current workers compensation carrier explaining these changes. Keep in mind that in order to exclude a Corporate Officer, Member of a Board of Directors, General Partner, or Managing Member of an LLC, each individual to be excluded must sign a written waiver of workers’ compensation benefits certifying under penalty of perjury that he/she is a qualifying Officer, Director, General Partner, or Managing Member of an LLC.

Once a waiver is accepted, new waivers will only be required if there is a change in status or individual wishes to change their status.

If you have any questions please don’t hesitate to call us at (619) 937-0164.