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Workers' Compensation - What's The Definition Of Payroll?

The following is the definition of "remuneration" (payroll) used by workers' compensation insurance companies. This is an excerpt the National Council on Compensation Insurance's Basic Manual on Workers' Compensation.

Remuneration Includes:

Wages or salaries including retroactive wages or salaries;Total cash received by employees for commissions and draws against commissions;Bonuses including stock bonus plans. ;Extra pay for overtime work; 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;Payment or allowance for hand tools or power tools used by hand provided by employees either directly or through a third party and used in their work or operations for the insured;The rental value of an apartment or a house provided for an employee based on comparable accommodations; The value of lodging, other than an apartment or house, received by employees as part of their pay, to the extent shown in the insured organization's records; The value of meals received by employees as part of their pay to the extent shown in the insured organization's records;The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay (refer to Exclusions below for certain fringe benefits [substitutes for money] not considered to be remuneration); Payments for salary reduction, employee savings plans, retirement, or cafeteria plans (IRC 125) that are made through employee-authorized salary reduction from the employee's gross pay;Davis-Bacon wages or wages from a similar prevailing wage law; Annuity plans;Expense reimbursements to employees to the extent that an employer's records do not substantiate that the expense was incurred as a valid business expense; Note: When it can be verified that the employee was away from home overnight on the business of the employer, but the employer did not maintain verifiable receipts for incurred expenses, a reasonable expense allowance, limited to a maximum of $30 for each such day, will be permitted.Payment for filming of commercials excluding subsequent residuals that are earned by the commercial's participant(s) each time the commercial appears in print or is broadcast. Remuneration Does Not Include:
Tips and other gratuities received by employees;Payments by an employer: (1) to group insurance or group pension plans for employees, and (2) into third-party pension trusts for the Davis-Bacon Act or a similar prevailing wage law, provided the pension trust is qualified under IRC Sections 401(a) and 501(a); 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; Expense reimbursements to employees to the extent that an employer's records substantiate that the expense was incurred as a valid business expense; Note: Reimbursed expenses and flat expense allowances, except for hand or power tools, paid to employees may be excluded from the audit.

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