Is it considered payroll?

Wednesday, March 10th, 2010 | Business Insurance

Many clients ask us this question when it comes time to report their payroll for Workers’ Compensation. Here is a handy list of what is considered payroll and what is not:

Included as payroll:

Sick, vacation, holiday pay, bonuses, commissions, automobile allowances, shift differential pay, idle time or standby/on-call pay, meals and lodging in lieu of wages, employee’s voluntary contributions to pension/retirement plan made through regular payroll deductions.

NOT included as payroll:

Tips, auto expense reimbursement, overtime excess pay*, severance pay, health and welfare paid by employer, meals and lodging expenses, employer contributions to pension/retirement plan, and salary reductions to fund Section 125 cafeteria plan.

* Overtime excess – 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.

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