California Orders Work Comp Insurers to Report Federal Income Tax Savings
California Insurance Commissioner Dave Jones has issued an order directing every insurer licensed to write workers’ compensation insurance in the state must report their federal income tax savings annually through a rate filing in light of the new tax law.
The recent revision to the Federal Tax Schedule for 2018 reduced the corporate tax rate from 35 percent to 21 percent. That means that nationally insurers will now be able to retain even more of policyholder premiums as profit.