NAC616B.789. Use of wages in determining premium and disability compensation; liability of principal contractor for premiums.

     1. For the purposes of determining premium and disability compensation, the wage of a sole proprietor who is not licensed pursuant to chapter 624 of NRS, has not elected coverage under the elective provisions of chapters 616A to 617, inclusive, of NRS and is performing as a subcontractor to an insured principal contractor shall be deemed to be $300 per month or $10 per day for the period of the subcontract, unless the contract specifies a wage greater than $300 per month or $10 per day for the sole proprietor.

     2. For the purposes of determining premium and disability compensation, the wage of a sole proprietor who is licensed pursuant to chapter 624 of NRS but who has failed to open or maintain an account in good standing and who is performing as a subcontractor to an insured principal contractor shall be deemed to be $500 per month or $17 per day for the period of the subcontract unless the contract specifies a wage greater than $500 per month or $17 per day for the sole proprietor.

     3. For the purposes of determining the premium required to be paid by the principal contractor and disability compensation, the wages of an employee of a sole proprietor who is a subcontractor and has not obtained coverage for his or her employees must be the actual wages paid, if the payroll records are provided to the private carrier. In the absence of complete payroll records, subsection 3 of NAC 616B.780 applies.

     4. The principal contractor is liable for the amount of any premiums payable as a result of the application of subsections 1, 2 and 3. The premium payable must be based on the classifications and rates that would be applicable to the subcontractor and the experience modification factor which would be applicable to the principal contractor.

     (Added to NAC by Div. of Industrial Relations by R112-98, 12-18-98, eff. 7-1-99)