Workers’ compensation premium is assessed on gross wages and other compensation as defined by law. The table below identifies whether or not a specific form of compensation is considered as payroll for premium calculation.
|Included as Payroll||Not Included as Payroll|
|Sick, vacation, and holiday pay||Tips|
|Bonuses and commissions||Reward for discovery or invention|
|Automobile allowances||Auto value; auto expense reimbursement|
|Regular overtime pay||“Overtime Excess” pay*|
|Shift differential pay||Severance pay|
|Idle time or standby/on-call pay||Health and welfare paid by employer|
|Meals and lodging in lieu of wages||Meals and lodging expenses|
|Certain pension/retirement plans: Employee’s voluntary contributions to pension/retirement plan, made through regular payroll deductions.||Certain pension/retirement/cafeteria plans: Employer contributions to pension/retirement plan, and salary reductions to fund the welfare or fringe benefit portion of a Section 125 cafeteria plan.|
*Overtime Excess (OTX): Total overtime compensation paid over and above the regular rate of pay, including increased pay for weekends, holidays, or hours worked beyond the standard number for the day or week.