The credit reduces the amount of the assessment apportioned to that employer.

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Multiple Choice

The credit reduces the amount of the assessment apportioned to that employer.

Explanation:
A credit in this system lowers the amount an employer must pay as part of the workers’ compensation financing. The assessment is the charge used to fund the program and is allocated to employers based on their share of exposure or payroll. When a credit is applied, it directly reduces that employer’s apportioned portion, so their liability for the current assessment goes down. It doesn’t affect payroll taxes, next year’s premium, or move funds to the state general fund. For example, if an employer’s share would be $12,000 and they receive a $3,000 credit, their liability becomes $9,000.

A credit in this system lowers the amount an employer must pay as part of the workers’ compensation financing. The assessment is the charge used to fund the program and is allocated to employers based on their share of exposure or payroll. When a credit is applied, it directly reduces that employer’s apportioned portion, so their liability for the current assessment goes down. It doesn’t affect payroll taxes, next year’s premium, or move funds to the state general fund. For example, if an employer’s share would be $12,000 and they receive a $3,000 credit, their liability becomes $9,000.

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