Top 10 List of Work Comp Audit Errors

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Workers Compensation Payroll

A Workers Compensation Term Definition

Workers Compensation Payroll...
This is the total remuneration paid by an employer during the policy period. Some exceptions and limits apply as outlined in rating manuals. These limitations include the exemption of overtime along with specific limits for executive officer, partners and sole proprietors. Rating manual limitations will vary by state.

  • For the purpose of workers compensation payroll usually means money or any substitutes for money. Payroll may include:

    • Wages or salaries
    • Cash received by an employee for commission and draws against commission
    • Bonuses including stock bonus plans
    • Pay for holidays, vacations, or periods of sickness
    • Payments or allowances for tools used by an employee
    • The value of lodging if used as part of their pay
    • The value of meals as a part of pay
    • The value of store certificates, merchandise, credits or any other substitute for money
    • Davis-Bacon wages or wages from similar prevailing wage law


Other items may be included as payroll as defined for workers compensation uses.





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