New Mexico Administrative Code
Title 13 - INSURANCE
Chapter 17 - WORKERS' COMPENSATION INSURANCE
Part 6 - PREMIUM ADJUSTMENT PROGRAM
Section 13.17.6.11 - CALCULATION OF AVERAGE HOURLY WAGE AND PREMIUM CREDIT
Current through Register Vol. 35, No. 6, March 26, 2024
The average hourly wage and premium credit shall be calculated in the following manner:
A. The average hourly wage for each policy's qualifying classifications shall be determined by dividing the total payroll or remuneration for each classification by the number of actual hours worked.
B. Total payroll and hours worked during the third calendar quarter of the year preceding the policy effective date as reported to taxing authorities shall be utilized in determining average hourly wage. If the insured did not engage in operations for the complete quarter, then the first complete quarter after policy inception shall be used.
C. In the absence of specific employer records demonstrating actual hours worked for a given employee, remuneration for such an employee shall not be included in the determination of average hourly wage, and the premium attributable to such remuneration shall not be subject to the premium credit program.
D. The percentage credit to be applied to the manual rate shall be determined separately for each classification, and shall initially be in accordance with the following Premium Credit Schedule until the schedule is amended pursuant to subsection F of this section:
|
INITIAL PREMIUM CREDIT SCHEDULE |
||||
|
Average Hourly Wage |
Credit From Manual Premium |
Average Hourly Wage |
Credit From Manual Premium |
|
|
$10.99 or less |
None |
$14.50 - $14.99 |
13% |
|
|
$11.00 - $11.49 |
6% |
$15.00 - $15.49 |
14% |
|
|
$11.50 - $11.99 |
7% |
$15.50 - $15.99 |
15% |
|
|
$12.00 - $12.49 |
8% |
$16.00 - $16.49 |
16% |
|
|
$12.50 - $12.99 |
9% |
$16.50 - $16.99 |
17% |
|
|
$13.00 - $13.49 |
10% |
$17.00 - $17.49 |
18% |
|
|
$13.50 - $13.99 |
11% |
$17.50 - $17.99 |
19% |
|
|
$14.00 - $14.49 |
12% |
$18.00 and above |
20% |
|
E. The credit shall be calculated for each qualifying classification utilizing the percentage credit determined in accordance with subsection D of this section. The discounted rates shall then be utilized to develop the manual premium.
F. By September 1 of each year beginning in 1992, the WCSO shall file for approval by the Superintendent an amended Premium Credit Schedule to adjust the starting and ending points for each of the wage groups in increments of $.10 to reflect any increase or decrease in the maximum compensation rate for total disability as established pursuant to NMSA 1978 Section 52-1-41. To determine the updated starting point for a wage increment, the previous starting point shall be adjusted by a percentage equal to the percentage increase in the maximum compensation rate for total disability. The result shall be rounded to the nearest $.10. No amendment of this rule shall be necessary in order to implement an adjustment made pursuant to this section.
