MCPAP 2010
Minnesota Contractors Premium Adjustment Program (MCPAP)
Information supplied by the Minnesota Workers’ Compensation Insurers Association.
Who is eligible for the MCPAP?
Employers who paid the qualifying average hourly wage in at least one workers’ compensation class code during the calendar year are eligible. In 2010, Minnesota’s qualifying average wage is $23.10. The average changes annually.
Workers’ Compensation Class Codes
0042 5020 5160 5348 5478 5538 6003 6235 6319 8227
0050 5022 5183 5403 5479 5551 6017 6236 6325 9521
1322 5037 5188 5437 5480 5606 6204 6237 6400 9534
3365 5040 5190 5445 5491 5645 6213 6248 7529 9539
3719 5057 5213 5462 5506 5649 6216 6251 7538 9554
3724 5059 5215 5472 5507 5651 6217 6252 7600 3726
5102 5221 5473 5508 5703 6229 6260 7601 5000 5146
5222 5474 5537 5705 6233 6306 7855
How is the MCPAP factor calculated?
Based on the information provided on the application, the Minnesota Workers’ Compensation Insurers Association (MWCIA) determines the classification premium credit. These calculations are displayed on a MCPAP Credit Worksheet.
MCPAP Timeline
Applications are mailed to employers every January. The enrollment period deadline is April 1 of each year Applications received after April 1 are subject to a two-point (.02) late processing penalty. This will translate to two percent less credit than earned, so a business that earned a 10 percent credit will now receive eight percent. Applications can be submitted up to 90 days after the effective date of the policy.
In early fall, the MCPAP Credit Worksheets are calculated and results are mailed to the carrier of record and the employer.
How to complete the MCPAP application
The employer will need to reference their workers’ compensation information page of their policy to find the classification codes for the period of January 1 through December 31 of the preceding calendar year.
Column 1 -- List all four-digit classification codes from the policy. Include both the contracting and non-contracting codes.
Column 2 -- List the payroll from January 1 through December 31 for the preceding calendar year. Include holiday, vacation, and sick pay. Also, include overtime hours at the regular pay rate. Exclude the premium portion of overtime pay.
Column 3 -- List the hours worked during the calendar year for all codes listed. Salaried employees are assumed to work forty (40) hours per week. Also, include hours paid for sick-time, vacations and holidays.
Frequently Asked Questions
Do I only list payroll for employees that make the qualifying average hourly wage?
No. You must include wages and hours (excluding the overtime premium pay) for all employees.
How can I calculate my Average Hourly Wage?
Divide your total payroll by the total hours worked for each class code.
Do I list all Classification Codes or only the Contracting Codes?
List all codes shown on the policy, including both contracting codes and non-contracting codes. Include total payroll and hours worked for each code.
Do I have to complete this application?
No. MCPAP is not mandatory. However, you will not receive a credit on your renewal policy if you do not complete the application.
Can I still send in my application if I forgot to apply?
We will accept applications after the due date. A two point (.02) penalty will be added to your policy credit factor. We will accept application up to 90 days after the effective date of your policy.
Disclaimer
This document is provided for informational and educational purposes only. It is not intended to, nor does it, provide any form of legal advice regarding the subject matter of the documents. You should not take any actions on the basis of this document, but instead should seek legal advice regarding your issues.
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