Policy premium is based on the amount paid, including money or substitutes for money, to employees during the policy period. The following is a list of items considered payroll and included in your workers’ compensation audit:
- Wages and salaries.
- Commissions and draws against commissions.
- Bonuses.
- Extra pay for overtime.
- Pay for holidays, vacations, or periods of sickness.
- Payment by an employer of amounts otherwise required by law to be paid by employees to statutory insurance or pension plans, such as the Federal Social Security Act.
- Payment to employees on any basis other than time worked, such as piecework, profit sharing, or incentive plans.
- The value of meals received by employees as part of their pay to the extent shown in the financial records.
- The value of store certificates, merchandise, credits, or any other substitute for money received by employees as part of their pay.
- Cafeteria plans, 401(k)s, annuity plans, Davis-Bacon wages, etc.
- Expense reimbursements that cannot be substantiated as a valid business expense.
The following is a list of items considered payroll and NOT included in your workers’ compensation audit:
- Tips and other gratuities received by employees.
- Payments by an employer to group insurance or group pension plans for employees.
- The value of special rewards for individual invention or discovery.
- Dismissal or severance payments except for time worked or accrued vacation.
- Payments for active military duty.
- Employee discounts on goods purchased from the employee’s employer.
- Valid expense reimbursements substantiated by expense reports.
- Meal money for late work.
- Work uniform allowance.
- Sick pay paid by a third party (such as group insurance).
- Employer-provided perquisites (“perks”), such as an automobile, an airplane flight, an incentive vacation (i.e., a contest winner), a discount, a club membership, or tickets to entertainment events.