Workers’ Compensation insurance premium is based in part on a company’s payroll. The payroll is multiplied by an assigned rate to calculate the insurance premium. In Workers’ Compensation, payroll includes wages; bonuses; overtime pay; holiday, vacation, and sick leave pay; Social Security and Medicare tax contributions by the employer; commissions, profit-sharing, or incentive plans; prevailing wages; and annuity plans.
Payroll may be estimated to reflect the upcoming Workers’ Comp policy year. At the annual policy audit, actual wages are calculated and reported to reflect any changes.
There are different types of reports for businesses to keep track of their payroll for various reasons – from cash flow purposes to payroll taxes, client billing, and Workers’ Compensation premium estimates:
Company Payroll Reports
These reports provide a detailed snapshot of the company’s overall payroll expenses over a specified period. With this information, businesses can more accurately predict their payroll cash requirements month after month and calculate their FICA taxes every quarter.
Employee Payroll Reports
These reports focus on a single employee. The report displays employee wages, taxes, and deductions. Each employee should receive this once a month and have complete access to previous reports.
Payroll Tax Reports
Business owners use these reports to show employee compensation annually and quarterly. The federal, state, or local governments calculate the business’s payroll taxes based on the data provided.
Certified Payroll Reports
Government contractors must submit certified payroll reports every week. The federal-certified report form is WH-347.
Time-Tracking Reports
If employees are required to complete timesheets (for example, home health care aides paid hourly), time-tracking reports can help track the total number of hours worked for a client. Businesses can also use time-tracking reports on a micro level to see how employees manage their time.
Paid Time Off (PTO)
Businesses use these reports to determine how much PTO an employee has taken this year and the remaining balance of hours.
Workers’ Compensation
Businesses that integrate payroll and Workers’ Compensation may be able to generate reports that assist the insurance company in calculating premiums. For every $100 spent on payroll, there are typically different coverage rates.
About Manchester Specialty Programs
We specialize in providing agents and brokers with totally integrated business insurance solutions, including Workers’ Compensation coverage, to meet the needs of Home Care, Allied Health, Medical Staffing, and Human/Social Services organizations. For more information about how our products and services can help protect your insureds, please contact us at 855.972.9399.