Workers’ Compensation Insurance provides indemnification for accidents incidental to or as a consequence of employment. This is a compulsory insurance that is obtained from the State Insurance Fund Corporation. All the employees of a business, including executive officers, are required to be covered by this insurance. The rate varies according to the type of labor performed by the employees. Rates are revised every year. The insurance premium is borne by the employer and is generally paid in two installments upon notice mailed to the employer by the State Insurance Fund.
The checks should be drawn to the Secretary of the Treasury of Puerto Rico and sent to the State Insurance Fund, GPO Box 5028, San Juan, Puerto Rico 00936. The notice mailed by the State Insurance Fund must be accompanied with the corresponding payments.
The amount to be paid is based on Form FSB693 (“Declaración de Nómina”) provided by the State Insurance Fund. The Company is required to file this form, no later than July 20 of every year, indicating the number of employees, kind of occupation, and the wages paid during the preceding July 1 to June 30.