• Executive officers of a corporation covered under a policy have the same status as the employees covered under the policy. Premium is based on their total payrolls, and must fall between certain minimum and maximum payroll amounts that are established each year. For example, effective September 1, 2001, the minimum individual remuneration for an executive officer is $13,988 per year and the maximum is $114,400. In the prior year, effective September 1, 2000, the minimum individual remuneration for an executive officer was $13,416 and the maximum was $109,200.

    The payroll of an executive officer is to be assigned to the classification that applies to the principal operations in which the executive officer is engaged.

  • Ordinarily, partners and sole proprietors are excluded from coverage. However, they can be covered, and if so, they have the same status as other covered employees. The premium is based on an annual payroll amount that is established each year. For example, effective September 1, 2001, the payroll amount is $37,500. For the prior year, effective September 1, 2002, the payroll amount was $35,900. The established payroll amount is used in calculating premium regardless of whether the individual's actual earnings are more or less than the established amount.

  • If your company adds a new operation or class that is not on your original payroll schedule, please contact your agent to determine the new payroll classifications and rates. This will avoid a large audit billing or overpayment of premium.

  • If you start or buy a new company, you must have your agent contact KESA to see if it can be added to your policy.