All businesses must declare their wages to their licensed insurer.
This is to help ensure they are paying the correct premium.
This is done by filling out the wages declaration form supplied by your licensed insurer.
The wages definition manual provides a comprehensive guide of the wages that should be taken into account when calculating premiums.
Wages can include:
- overtime, shift and other allowances
- over award payments
- bonuses, commissions
- payments to working directors (including directors' fees)
- payments to pieceworkers
- payments for sick leave, public holidays and the associated leave loadings
- value of any substitutes for cash
- employer paid or payable superannuation contributions (including the superannuation guarantee levy)
- grossed up value of fringe benefits (allowances subject to fringe benefits tax are counted at the grossed up value, that is the value of the benefit multiplied by the relevant Australian Tax Office fringe benefit formula)
- long service leave payments (including lump sum payments instead of long service leave)
- termination payments (lump sum payments in respect of annual leave, long service leave, sick leave and related leave loadings)
- trust distributions to workers where the distribution is in lieu of wages for work done for the trust
Wages do not include:
- payments to non working directors
- compensation payments under the Workers Compensation Act 1987
- any GST component in a payment to a worker