For fiscal year 2020-2021, private employers may receive a 10% credit in the policy of the Corporation of the State Insurance Fund (CFSE), with a cap of up to $ 50 million, reported this Sunday Senator Miguel Romero Lugo .
This credit is given thanks to Joint Resolution 77-2020 of the legislator and will be covered by the surplus generated and certified by said entity during previous fiscal years.
“The Covid-19 pandemic has had a great impact on the island’s economy. Private employers have been the economic sector that has been most affected as a result of prevention measures to avoid the spread of the virus and it is important that we take them into account, since their sacrifice contributes to an imperative well-being of public health, ”said the senator.
Romero Lugo also explained that “offering this economic relief to employers is part of the measures we must take to support the business sector. This credit assists private employers so that they can maintain their employer immunity, the protection against lawsuits that only the Fund offers and the payment of costly medical treatment in cases of work accidents, for the benefit of our workers ”.
To obtain this benefit, the employer must file his payroll declaration within the period established by law. The granting of the credit will be subject to the payment of the policy within the terms established by law.
To calculate the premium paid by an employer for his policy, the annual payroll estimated by risk classification is used. 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 revenues have been significantly reduced.
According to the law, 115,000 of permanent policies range from $ 0 to $ 1,000,000 annually in payroll; 111,000 policies range from $ 0 to $ 250,000; and 2,100 policies exceed $ 1,000,000 annually in payroll.
This benefit will be capped at $ 50 million and will be covered by the surplus that the CFSE has generated during the past fiscal years, as certified by the administrator of the public corporation. These economies have been generated by sound administration measures taken by the current CFSE management, the senator said.
“Given the economic catastrophe we are experiencing, it is fair and meritorious that this money is used to grant this credit to employers and thus stimulate the important line that businesses and companies represent in the local economy,” he concluded.