Payroll Reporting

PayPro pay-as-you-go billing

PayPro is an online “pay-as-you-go” reporting and billing program that simplifies your reporting process. No more paper necessary, and it makes your year-end audit a breeze!
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With PayPro, you can enjoy convenient online benefits!

  • 24/7 online access to your payroll reporting and premium payment records.
  • Calculations are based on your actual payroll vs. generated estimates.
  • Improves cash management by invoicing accurate premiums. Avoid overpayment or underpayment!

Need help with PayPro? Visit the PayPro page.

Installment plans

Installment plans are available for monthly or quarterly terms. You’ll receive a payroll report during your policy term to verify payroll and compare to your estimates to ensure there are no surprises at final audit.

Payroll reporting guidelines

Refer to these guidelines to determine your workers’ compensation applicable payroll. While most of the rules are the same by state, there are some exceptions that can be found below.

State exceptions

To see payroll reporting exceptions in your location,
See exceptions in all states


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.


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.


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


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


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


Payments/allowances for hand tools are not included.


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


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


Does not allow for the exclusion of overtime, tips, gratuities, or severance pay. Payroll limitation of $36,000 applies for all employees. Report actual payroll up to the limitation and then you may discontinue reporting payroll for those employees.

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.


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.


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


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


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


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

For information on final audits, check out the Your Final Audit page ›

Workers’ Compensation Payroll Report Instructions
Helps you determine what payroll to include for Workers Compensation reporting.

Download PDF

Payroll reporting FAQs

Can I divide an employee’s payroll between different classifications?

If the employee can be classified under two or more class codes that allow for payroll division, the payroll can be divided. It is imperative that proper records are kept for this division to be allowed (for example: time cards, or a log that records an employees’ hours for their various job duties).

Important note: No payroll division is allowed for clerical and outside sales employees. Other class codes exist that do not allow for payroll division. Check with your insurance agent or Payroll-Reportingcontact Payroll Reporting Support for further clarification.

**If you are a contractor in California, please reference the time card requirements explained in Notice to Dual Wage contractors: California Time Record Requirements.

What if I want to add a new operation or need to add another class?

The class codes and locations appearing on your payroll report are the ones that your policy was issued with. If you have a new operation or a new class code, please be sure to contact your insurance agency with this information. Your agent / broker will notify our underwriting department regarding the change(s).

If you are unable to reach your agency before your payroll report is due, please add to the bottom of your report (under the current class codes). Make sure to include your phone number on the bottom of the report so that we can call you with any questions

These steps will ensure that the billing of premium is done timely and accurately.

I’m paying a fixed amount monthly, will this change during the policy period?

The amount you are paying is based on the payroll estimates that you provided to us when your policy was written.  If you’ve had a substantial increase/decrease in business, your policy should be adjusted to ensure that you don’t have any large premium increases or decreases at final audit (the audit for the entire policy period).

I just received a payroll report, but I’m on installment billings – do I have to fill this out?

Yes, please!  Completing the form and submitting to us will assist us in making sure you aren’t facing any large adjustments at final audit.  We use the payroll you’ve provided and compare to the policy estimates to determine if any changes to your policy should be made.  Please make sure to let us know on your form if your payroll fluctuates throughout the year, or if your business is seasonal.

What do I do with the completed payroll report form?

You can mail via USPS (PO Box 509039; San Diego, CA 92150), scan and email to or FAX to 858-350-2606 — whatever works best for you.

Payroll reporting references

Officers & Partners Annual Maximum Payrolls

Lists the maximum payrolls for officers and partners in each state.

Download PDF