Special Announcement Regarding Payroll and COVID-19
In response to the COVID-19 crisis, we have initiated work with our stakeholders to identify potential regulatory changes with respect to payroll reporting and the classification of payroll and claims. One immediate focus is on assessing what changes may be appropriate to address the following increasingly prevalent situations:
The WCIRB is working to determine the scope of any emergency regulatory changes to be proposed to the California Insurance Commissioner. We anticipate completing this time sensitive effort within the next few weeks.
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.
We welcome your feedback on this guide. Please send comments and suggestions to [email protected].