AI-assisted research summary: Insurance companies writing workers’ compensation insurance must pay a 4% tax on gross premiums, plus a 0.4% surcharge, with a small-employer exception for the surcharge.
Every insurance company writing workers' compensation insurance under the Workers' Compensation Law, compiled in title 50, chapter 6, shall be subject to and pay a tax of four percent (4%) on gross premiums collected for workers' compensation insurance, plus a surcharge of four tenths of one percent (0.4%) on gross premiums, the surcharge to be earmarked for the administration of the Tennessee Occupational Safety and Health Act, compiled in title 50, chapter 3. This tax shall be paid at the same time and in the same manner as the tax levied upon insurance companies by § 56-4-205 ; provided, that the surcharge of four tenths of one percent (0.4%) on the tax on workers' compensation insurance premiums levied by this section does not apply to any employer who employs ten (10) or fewer employees, unless the employer is in the business of construction or manufacturing. Acts 1945, ch. 3, § 2; C. Supp. 1950, § 1248.42 (Williams, § 1248.170); T.C.A. (orig. ed.), § 56-409; impl. am. Acts 1980, ch. 534, § 1; Acts 1981, ch. 396, §§ 1, 4. NOTES TO DECISIONS 1. Premium Tax. 1. Premium Tax. Although a tax credit was allowed under T.C.A. § 56-4-217(a) for premium taxes paid by workers' compensation self-insurers under T.C.A. § 56-4-206 , the tax credit for franchise and excise taxes paid under former T.C.A. § 56-4-217(b) did not apply to self insurers as well. Former T.C.A. § 56-4-217(b) was added to the statute at the same time and in conjunction with 56-4-217(c) , which restricted its application to “insurance companies” as defined in T.C.A. § 56-1-102(2) , therefore the credit described in former T.C.A. § 56-4-217(b) was also restricted to insurance companies and did not apply to the taxpayer as a workers' compensation self-insurer. Saturn Corp. v. Johnson, 197 S.W.3d 273, 2006 Tenn. App. LEXIS 252 (Tenn. Ct. App. 2006).