The Workmen Compensation Act mandates the employer to pay a compensation amount equal to 50% of monthly wages of the deceased employee. It can be a maximum monthly wage ceiling of Rs. 8000 multiplied by the relevant factor, or a sum of Rs. 140,000, whichever is higher.

When determining the basis of premium, the following are included as payroll:

• Gross wages.
• Salaries.
• Commissions.
• All bonuses.
• Most profit sharing.
• Vacation, holiday and sick pay.
• Overtime (“straight time” portion only)
• The market value of gifts.

Wages are compensation for an employee’s personal services, whether paid by check or cash, or the reasonable cash value of noncash payments such as meals and lodging. Wages include, but are not limited to: Salaries, hourly pay, piece rate, or payments by the job.

How much does workers’ comp cost per employee? The truth is, it depends — on their wages and what they do. Workers’ compensation insurance cost is based on payroll, regardless of whether the employee is full-time, part-time, temporary or seasonal.

Wages
Wages, salary, fringe benefits, superannuation and/or any other consideration an overseas employer provides a worker working in NSW, is counted as remuneration.

Even though workers’ comp is calculated using estimated payroll wages and class codes, premium is still a separate business expense from the cost of payroll. California Employers may treat the cost of coverage as an expense on their taxes.

(s) “wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and …

Exclusions in payroll for Workers Compensation insurance: The value of special rewards for individual invention or discovery. Dismissal or severance payments, except for time worked or accrued vacation. Payments for active military duty. Employee discounts on goods purchased from employer.

However, as an employer, if you choose to pay higher than this amount the difference does need to be included in your wage declaration. This includes amounts paid under salary sacrifice arrangements.

Broadly speaking there are three types of insurers in the NSW workers compensation system: icare; self-insurers; and specialised insurers. icare is a NSW Government agency that provides insurance and care services to statutory authorities and to people with injuries under various compensation schemes.

Many of the payments covered by the Workers Compensation Act 1987(the Act) definition of ‘wages’ are not of the type that might be generally thought of as wages – for example, the definition includes ‘any other consideration in money or money’s worth given to the worker’ under a contract of service or a training contract.

Many of the payments covered by the Act definition of ‘wages’ are not of the type that might be generally thought of as wages – for example, the definition includes ‘any other consideration in money or money’s worth given to the worker’ under a contract of service or a training contract. For this reason WorkCover uses the term ‘remuneration’.

The two main Acts referred to in the Wages Definition Manualare: • Workers Compensation Act 1987(the 1987 Act) • Workplace Injury Management and Workers Compensation Act 1998(the 1998 Act). T icare TMInsurance and Care NSW. 3 of 34 Wages Definition Manual Introduction