§ 412:32 — Extraterritorial Auditing Procedure

I. In this section:
(a) "Business headquarters" or "headquarters" means the state in which the business resides, as evidenced by filing of federal income taxes.
(b) "Extraterritorial" means the movement of employees and exposures across state lines.
(c) "Terminal" or "base of operations" means a permanent location owned, leased or used by a trucker at which loading, unloading and other related nonclerical work functions, such as maintenance and transfers, are performed and from which the driver/employee physically reports to work on a regular basis.
(d) "Trucker" means a person or entity engaged in the business of transporting property by motor vehicle for hire.
(e) "State of residence" means the state in which the trucker resides as evidenced by the location used for filing of federal income taxes.
II. All insurers authorized to write workers' compensation coverage in this state, including premium auditors and underwriters, shall use the following extraterritorial rules in the determination of premium for risks with extraterritorial employments, as well as in calculating estimated and final premium to be charged employers.
III. For employers with employees, specifically salesmen, sales engineers, servicemen, supervisors, executives and administrative employees, who move from state to state in the performance of their jobs the following shall apply:
(a) The payroll for an employee who resides in the same state as the headquarters from which the employee travels shall be assigned to such employee's headquarters state.
(b) The payroll for an employee who resides in a state different from that in which the employee's headquarters is located, but nevertheless travels from such headquarters, shall be assigned to the headquarters state.
(c) The payroll for an employee who resides in a state in which no headquarters is located, and who conducts business from home for an out-of-state employer, shall be assigned to the employee's state of domicile or residence.
IV. For employers involved in interstate trucking operations the following shall apply:
(a) The payroll for employees shall be assigned to the state in which the base terminal or base of operations from which they load, unload, store, or transfer freight on a regular basis is located.
(b) The payroll for employees who do not operate from a terminal or base of operations shall be assigned in the following manner:
(1) Employee records reflecting significant single state operations shall be assigned to that state.
(2) Employee records reflecting multi-state operations shall be assigned to the employee's state of residence or domicile.
V. For employers involved in construction, erection, installation and similar contracting operations the following shall apply:
(a) The payroll for employees assigned to a job of 2 days or less duration in a state, other than that of the business headquarters, shall be assigned to the state where the headquarters is located.
(b) The payroll for employees assigned to a job of 3 days or longer duration in a state, other than that of the business headquarters, shall be assigned to the state where the job is located.
(c) The payroll for employees assigned to general oversight of an out-of-state job, and not responsible for direct daily supervision, shall be assigned to the state where the headquarters is located.
(d) The payroll for employees hired for a specific job project shall be assigned to the state in which the job is located.

Legislative History

2003, 150:1, eff. Jan. 1, 2004.