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Learn About Business Insurance Audits | Payroll Exclusions | Video 5

By August 5, 2021August 6th, 2021Business Insurance

Payroll Exclusions In A Commercial Audit

Now that we have covered what is included in payroll, let’s talk about what is excluded from payroll. There are a number of costs that are typically excluded when payroll is calculated for the purpose of rating workers compensation insurance and generally include the following:

  • Tips and other gratuities received by employees over minimum wage
  • Severance pay (other than for time worked)
  • Discounts on goods purchased from the employer
  • Reimbursed business expenses
  • Pay for active military duty
  • Uniform allowances

As I mentioned in the previous video, we know that the conversation around payroll is a complex one. Don’t hesitate to reach out to us with your questions.

See our sixth video on business audits.