Private employers to receive discount on State Insurance Fund policy payment
By John McPhaul
For fiscal year 2020-2021, private employers may receive a credit of 10 percent on the State Insurance Fund Corp. (CFSE by its Spanish initials) policy, capped at up to $50 million, Sen. Miguel Romero Lugo said Sunday.
The credit, provided in Joint Resolution 77-2020, authored by Romero Lugo, will be capped at $50 million and covered from the surplus generated by the Fund during previous fiscal years, as certified by the administrator of the public corporation.
“The COVID-19 pandemic has had a great impact on the island’s economy,” the senator said. “The employers in the private sector have been the economic sector most affected as a result of the prevention measures to prevent the spread of the [corona]virus, and it is important that we take them into account since their sacrifice contributes to the imperative of public health and well being.”
Romero Lugo added that “offering this economic relief to employers is among the measures that we must take in support of the business sector.”
“This loan helps private employers so they can maintain their employer immunity, the protection against lawsuits offered only by the Fund and the payment of expensive medical treatments in cases of work accidents, for the benefit of our workers,” he said.
To obtain the benefit, employers must file their payroll statement within the period provided by law. The granting of the credit will be subject to the payment of the policy within the terms established by the legislation.
To calculate the premium employers pay for their policy, the annual payroll estimated by risk classification must be taken into consideration. However, as a result of the emergency, many businesses are closed and are not generating income. Meanwhile, exempt businesses are operating on a limited basis and their income has been reduced significantly.
According to the law, 115,000 permanent policies range from $0 to $1 million annually in payroll, 111,000 policies range from $0 to $250,000, and 2,100 policies exceed $1 million annually in payroll.
The aforementioned savings generated by the CFSE have been generated by sound administration measures taken by current management, the senator indicated.
“Given the economic catastrophe we are experiencing, it is fair and meritorious that this money be used to grant this credit to employers and thus stimulate the important role represented by businesses and companies in the local economy,” Romero Lugo said.