Workers' Compensation Earthquake Surety Bonds Explorer Auto
ICW Group provides Workers' Compensation, Earthquake, Surety, and Auto insurance.

Reporting Guidelines and State Exceptions

Use the following items as a general guideline for reporting payroll for Workers’ Compensation. Be sure to check below for any *State Exception that may apply.

Notes:

- Asterisk (*) indicates there may be a State Exception.

- California Contractors, see dual wage construction classifications note.

Reporting Total Gross Payroll:

  • Vacation Pay*, Holiday Pay, Bonuses* and Commissions*
  • Sick Pay - not paid by a third-party administrator
  • Employee contributions to a 401(k) or other deferred compensation plan
  • Employee contributions to a Section 125 Cafeteria Plan*
  • Auto Allowances*
  • The rental value of an apartment or house provided to an employee
  • Market value of lodging, other than an apartment or house received by an employee as part of their pay other than an apartment or house received by an employee as part of their pay*
  • Value of free meals provided by the employer*
  • Travel or “Show Up” pay
  • Davis Bacon wages or wages from similar state or local prevailing wage laws
  • Payments for hand tools provided by the employee, either directly or through a third party*

What You May Exclude:

  • The increased or excess portion of overtime:*
  • 1/3 of overtime when overtime is paid at 1.5 times the regular hourly rate (time and a half)*
  • 1/2 of overtime when overtime is paid at 2 times the regular hourly rate (double time)*
  • Severance Pay*
  • Charges for the Personal Use of Company Vehicles
  • State Prevailing Wage fringe Benefits paid to a third party administrator
  • Davis Bacon or similar state or local prevailing wage fringe benefits paid to a third party administrator*
  • Tips or Gratuities*
  • Reimbursements for actual expenditures, to the extent they are substantiated in the payroll records

State Exceptions:

  • Arizona -

    Does not include the value of lodging in payroll, except as specified in certain classifications. The value of meals is not included. Exclude only Davis Bacon fringe benefit payments paid into an ERISA qualified third-party pension plan.

  • California -

    Does not include the value of lodging or meals, except as specified in certain class codes or if provided in lieu of wages. Exclude employee contributions to a section 125 plan (other than contributions to pension or deferred compensation plans). Include prevailing wage vacation and holiday fringe benefits, even when paid to a third party administrator.

    Note about dual wage construction classifications - see this PDF: California Time Record Requirements. If the auditor is unable to verify classifications at the time of audit, all payroll must be placed in the highest rate, regardless of the wage level.

  • Colorado -

    Davis Bacon Act fringe benefits provided separately by employer are not included.

  • Florida -

    Does not include awards for employee achievements or discoveries, pure gratuities, or results of a voluntary profit sharing program.

  • Kansas -

    Can exclude Vacation, Holiday or Sick pay if shown in records.

  • Kentucky -

    Payments/allowances for hand tools are not included.

  • Louisiana -

    Exclude special reward for achievements or discovery, pure gratuities or the result of voluntary profit sharing arrangements if not part of an employment contract.

  • Mississippi -

    Include expense reimbursement if records do not confirm expense was incurred as a business expense.

  • Nevada -

    Does not allow for the exclusion of overtime, tips, gratuities, or severance pay. Payroll limitation of $36,000 applies for all employees. You may report actual payroll up to the limitation and then discontinue reporting payroll for those employees, or you may limit each employee to $3,000 on a monthly basis.

  • New Jersey -

    Includes gratuities except when specifically excluded by classification wording. Excludes pay at termination or retirement for unused personal or sick days.

  • New Mexico -

    Bonuses paid under a state approved safety program are not included.

  • Oregon -

    Does not include vacation pay or unanticipated bonus pay, amounts payable under profit sharing agreements or payments that are part of a program to reward workers for safe working practices. Only Davis-Bacon fringe benefits paid into an ERISA qualified third-party pension plan may be excluded.

  • Pennsylvania -

    Does not allow for the exclusion of overtime. Exclude special rewards for discovery or invention.

  • Tennessee -

    Includes bonuses only when paid in lieu of wages and specified as a part of a wage contract.

  • Texas -

    Excludes safety awards paid in accordance with a written safety plan and the value of special rewards for individual invention or discovery.

  • Virginia -

    Does not exclude Davis-Bacon wages even when paid to third-party pension trusts.

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