Once classification assignments have been made, payroll data is reported to the WCIRB based on these assignments. One of the primary components of the rate that an employer pays for its workers' compensation insurance policy is determined by the classification code(s) to which that payroll is assigned. Also, the items that constitute payroll when determining the basis of workers' compensation insurance premium are quite specific. Detailed information about what constitutes payroll, often referred to as remuneration, can be found in the Filings and Plans section.
When determining the basis of premium, the following are included as payroll:
The following items are excluded from payroll when determining the basis of premium:
In addition, the following are not included as payroll for premium computation:
Payroll for workers' compensation insurance purposes is not necessarily the same as the Internal Revenue Service definition of payroll.
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