Remuneration is one of the gross amounts that you reimburse to workers before tax and can comprise both cash as well as non-cash payments. There are a number of items that are inclusions in Payroll for Workers Compensation and are mentioned below in this blog post.
Inclusions in Payroll for Workers Compensation
Some expenditure to workers is not a fraction of your payroll, but they must be built-in your calculation of ratable remuneration. Mentioned below some of the inclusions in payroll for workers compensation
Salaries and wages
1) Salaries
2) Allowances
3) Annual leave payments
4) Wages
5) Make-up pay
6) Back pay
7) Gross pay before tax
8) Long service leave
Fringe benefits
If it’s necessary to complete a Fringe benefits tax return, then you must include a fringe benefits amount as part of your remuneration.
Contractors
Be sure about the payments to contractors are included. For more information, see the workers guideline and contractors. Payable in relation to payments to contractors is not considered ratable remuneration.
Commissions
A commission is a sum of cash that is paid to a worker upon the completion of a task that usually the task of selling a certain amount of services or goods. It can be paid as a percentage of the sale or amount based on sales volume. This includes the commissions paid to part-time or insurance, canvassers or collectors.
Superannuation
Many employers reimburse a higher amount of superannuation than the law requires. It is required to include superannuation in the calculation of your remuneration, as this differs between employers.
Payroll tax
If you are also registered for payroll tax, there are a number of differences between Work Safe’s definition of wages and remuneration i.e. used for payroll tax purposes.
If you have workers that work in more than one state or territory the interstate workers guideline can provide you with Inclusions in Payroll for Workers Compensation advice.
