Loading in 2 Seconds...
Loading in 2 Seconds...
Payroll (Not Remuneration) NCCI Inclusions and Exclusions State Exceptions as they apply to IAAW States. Shari Balazs – Overland Solutions Kurt Lang – Safeco Insurance. Basic Manual-2001 Edition. Rule 2 --- Premium Basis and Payroll Allocation PREMIUM BASIS Effective 01 Jul 2001
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Shari Balazs – Overland Solutions
Kurt Lang – Safeco Insurance
Rule 2 --- Premium Basis and Payroll Allocation
Premium is calculated on the basis of the total payroll paid or payable by the insured……..
a. Wages or Salaries, including retroactive wages or salaries.
b. Commissions and draws against commissions
c. Bonus including stock bonus plans
Stock Bonus – a bonus paid with shares of corporate stock.
The stock shares are considered a substitute for money and their value is to be included
Awarding of stock options is no longer just for officers, it is also given to employees.
(Not included in CA unless classification phraseology specifically includes lodging or wages are reduced by the an amount equal to the value of such lodging.)
(The value of lodging not included in AZ.)
(Rental value of an apt or house subject to a minimum of $150/month in NV.)
The amount by which an employee’s salary is reduced to fund the fringe benefit portion of a cafeteria plan qualified under Section 125 of the IRS code shall not be included in the payroll – CA RULE.
NEW FEATURE – the employer’s records are to be maintained to show separately such amounts by employee and in summary by type of operation performed.
(MT does not allow reportable tips to be excluded.)
Banquet tips are not freely given and paid by the employer so they are not excludable.
Private clubs that solicit contributions from its members (voluntary or otherwise) to distribute to the employees, these monies are considered bonuses and not tips and are not excludable.
CA States the following: Tips, voluntary or prepaid, received from other than the employer, or one acting on behalf of the employer are not included in the payroll.
If verified business expenses occur but not shown in records then a reasonable expense allowance is permitted, to a maximum of $30 per day.
($75 day maximum allowed for OR & AZ)
1st week employee’s gross wage $1,100.
2nd week employee’s gross wage $400.
3rd week employee’s gross wage $500.
Total gross wage $2,000.
Multiple gross wage by weeks worked $1,800.
Excess payroll $200.
Banquet tips are no longer excluded except for CA.
For salary reduction plans,(retirement savings, 401K) determine whose money is it? If the employee’s money then usually it is included. If the employer’s moneyit is usually not paid directly to the employee and is excluded
Don’t commit to a deduction you are not sure of; better to advise the insured you will confirm upon research.