What’s considered payroll?

Wages or salaries including retroactive wages or salaries;

Total cash received by employees for commissions and draws against commissions;

Bonuses including stock bonus plans:

Extra pay for overtime work except as provided in Rule V.E.;

Pay for holidays, vacations or periods of sickness. Refer to Rule IV.E.2. for allocation of payroll for employees subject to more than one classification code;

Payment by an employer of amounts otherwise required by law to be paid by employees to statutory insurance or pension plans, such as the Federal Social Security Act;

Payment to employees on any basis other than time worked, such as piecework, profit sharing or incentive plans;

Payment or allowance for hand tools or power tools used by hand provided by employees either directly or through a third party and used in their work or operations for the insured;

The rental value of an apartment or a house provided for an employee based on comparable accommodations;

The value of lodging, other than an apartment or house, received by employees as part of their pay, to the extent shown in the insured’s records;

The value of meals received by employees as part of their pay to the extent shown in the insured’s records;

The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay. Refer to Exclusions below for certain fringe benefits [substitutes for money7 not considered to be remuneration;

Payments for salary reduction, employee savings plans, retirement or cafeteria plans (IRC 125) which are made through employee authorized salary deductions from the employee’s gross pay;

Wages paid to employees as salary in conjunction with the Davis-Bacon Act or other prevailing wage laws;

Annuity plans;

Expense reimbursements to employees to the extent that an employer’s records do not substantiate that the expense was incurred as a valid business expense;

Payment for filming of commercials excluding subsequent residuals which are earned by the commercial’s participant(s) each time the commercial appears in print or is broadcast.

Tips and other gratuities received by employees;

Payments by an employer to group insurance or group pension plans for employees, other than payments covered by Rule V.B.2.f. and Rule V.B.2.m.;

The value of special rewards for individual invention or discovery;

Dismissal or severance payments except for time worked or accrued vacation;

Reimbursed expenses and allowances paid to employees shall be excluded, provided all three of the following conditions are met:

The expenses or allowances were incurred in the course of the employer’s business;

The amounts are shown separately for each employee in the employer’s records;

The amount of each expense reimbursement or allowance payment approximates the actual expenses incurred;

Payments for active military duty;

Employee discounts on goods purchased from the employee’s employer;

Supper money for late work;

Work uniform allowances;

Sick pay paid to an employee by a third party such as an insured’s group insurance carrier which is paying disability income benefits to a disabled employee;

Employer provided perquisites (“perks”) such as:

Employer contributions to salary reduction, employee savings plans, retirement, or cafeteria plans (IRC 125)–Contributions made by the employer, at the employer’s expense, that are determined by the amount contributed by the employee.