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Remuneration and Payroll Used for Workers Compensation
A Workers Compensation Term Definition
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- Remuneration and Workers Compensation Payroll...
- To pay an equivalent to for service or loss or expense. Remuneration is the act of compensating. From a workers compensation perspective rumuneration is the exposure basis used in the premium calculation process.
- It's not a word you run across every day! But it has an enormus effect on the pricing of a workers compensation insurance policy. Many insurance agents, their clients and even some insurance company personell believe that payroll is the rating base for a workers comp policy, and they would be wrong. Payroll is merely a part of the overall category of remumeration. There are many other items that fall under this term. Many other items most would not consider a form of compensation or even consider being included in the rating basis for a workers comp policy.
According to NCCI rules, remuneration means money or a substitute for money and includes:- Payroll - wages and salaries;
- Commissions and draws against commissions;
- Bonuses
- Extra pay for overtime as defined and outlined in their rule V-E;
- Holiday, vacation and sick pay;
- Payment by employer into statutory insurance and/or pension plans...read Social Security;
- Payment for piecework, profit sharing or other incentive plans;
- Payment, compensation or allowance for tools used in work;
- Value of rental of apartment or house, provided for an employee;
- Value of other lodging an employee receives as part of their pay;
- Value of meals to employees as part of their pay;
- Value of store certificates, credits or merchandise or other money substitutes received as part of pay;
- Payments for salary reduction, employee savings plans etc as made through employee authorized salary reduction;
- Davis-Bacon pay or pay from other prevailing wage law;
- Annuity plans;
- Expense reimbursement to employees where employer records do not indicate a valid business expense;
- Payment for filming commercials excluding residuals.
At the time this definition was compiled these states are known to make exceptions to this list: Alaska, Arizona, Colorado, Florida, Kansas, Kentucky, Louisiana, Maine, Minnesota, Montana, New Mexico, Nevada, Oklahoma, Oregon, South Dakota, Tennessee, Virginia, Wisconsin.
So just remember, remuneration may mean more than just payroll.
- It's not a word you run across every day! But it has an enormus effect on the pricing of a workers compensation insurance policy. Many insurance agents, their clients and even some insurance company personell believe that payroll is the rating base for a workers comp policy, and they would be wrong. Payroll is merely a part of the overall category of remumeration. There are many other items that fall under this term. Many other items most would not consider a form of compensation or even consider being included in the rating basis for a workers comp policy.
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