Researchers have begun to consider proper utilization of the extra money for the Workers Comp Insurance Fund. Raising the minimum wage is scheduled to expand the Workers Comp Insurance Fund which is calculated from a companies record of their total payroll.
Company accountants multiply the annual payroll by the rate classification. The rate classification is based on findings of the National Council on Compensation Insurance. The rate per industry is based upon the risk of injury and an estimate of medical costs.
A State Wide mandate to raise the minimum wage rapidly raises the annual payroll which boosts company premiums being deposited in to the Workers Comp Fund. Fund managers are challenged to determine proper utilization of all this extra money.
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