Workers’ compensation premium is assessed on gross wages and other compensation as defined by law. The table below identifies whether or not a specific form of compensation is considered as payroll for premium calculation.
| Included as Payroll | Not Included as Payroll |
| Sick, vacation, and holiday pay | Tips |
| Bonuses and commissions | Reward for discovery or invention |
| Automobile allowances | Auto value; auto expense reimbursement |
| Regular overtime pay | “Overtime Excess” pay* |
| Shift differential pay | Severance pay |
| Idle time or standby/on-call pay | Health and welfare paid by employer |
| Meals and lodging in lieu of wages | Meals and lodging expenses |
| Certain pension/retirement plans: Employee’s voluntary contributions to pension/retirement plan, made through regular payroll deductions. | Certain pension/retirement/cafeteria plans: Employer contributions to pension/retirement plan, and salary reductions to fund the welfare or fringe benefit portion of a Section 125 cafeteria plan. |
*Overtime Excess (OTX): Total overtime compensation paid over and above the regular rate of pay, including increased pay for weekends, holidays, or hours worked beyond the standard number for the day or week.