Payroll Exclusions
Since "remuneration" (payroll), is the basis of premium for workers compensation insurance, it is important to take all the deductions you are entitled.
In most states, the following items should be removed from the audit:
- Tips and other gratuities received by employees.
- Payments by an employer:
- To group insurance or group pension plans for employees.
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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) & 501(a).
- The value of special rewards for individual invention or discovery.
- Dismissal and severance payments except for time worked or accrued vacation.
- Payments for active military duty.