March 4, 2008
Question: What is remuneration?
Remuneration is the premium base used to calculate workers’ compensation premiums. It is generally referred to as payroll, but it includes more than the employees’ weekly paychecks. Remuneration is defined to mean money and substitutes for money and it includes the following:
- Wages or salaries, including retroactive wages and salaries
- Total cash received by employees for commissions, draws against commisssions, piecework, profit sharing, and incentive plans
- Bonuses, including stock bonus plans
- Pay for holidays, vacations, and sick leave
- Employees’ share of Social Security and similar statuatory plans even if paid by the employer
Remuneration excludes some pay received by employees and the following can be deducted from the total remuneration:
- Overtime - the extra amount of pay above the regular wages may be excluded for overtime hours that are worked by employees.
- Tips
- Payments by employees for group insurance or pension plans
- Special awards for invention or discovery
- Severance Pay
- Executive officers have a minimum and maximum limits for their payroll if they are included on the policy
- Partners and Sole Proprietors have a fixed amount of payroll if they are included on the policy
When using remuneration to compute the manual premium on a workers’ compensation policy, you must use it in $100 units. Basically, just divide the total remuneration for each classification code by 100 before multiplying it by the class code’s corresponding rate.
March 19th, 2008 at 8:11 am
[...] 9058 - This classification code is applied to all restaurant employees under the direct management of hotels, motels, motor courts and tourist courts or cabins. A restaurant that is operated by an insured who is not involved in the above-mentioned businesses is classified to the appropriate restaurant classification listed below, even if the restaurant may be located on the premises of a hotel, motel, etc. Restaurant operations are a normal adjunct to these establishments and they usually cater to the general public as well as guests of their facilities. Employees engaged in food and beverage preparation and service at apartment hotels, dude ranches and rooming or boarding houses also fall within the scope of this classification. This classification also includes musicians or entertainers, hostesses, bartenders, waiters, waitresses, cashiers, cooks, busboys, dishwashers and restaurant managers. The Florida rate for this classification in 2007 was 3.02 and in 2008 it is now 2.60 dollars for every 100 dollars of renumeration. [...]
March 19th, 2008 at 8:33 am
[...] 2802 - This classification is applicable to businesses whose operations consist of the manufacture and/or assembly of wood products in a shop. The products manufactured typically will not require a high degree of finishing work. If an insured engages in both carpentry shop and installation/erection operations, separate classifications may apply to each type of exposure. For example, preliminary shop carpentry performed by contractors in connection with the building of private residences may be assigned to Code 2802 while the actual building of the dwelling may be assigned to a carpentry construction classification such as Code 5645. Refer to the Basic Manual for rules governing this type of situation as well as the necessary record keeping requirements.The Florida rate for this classification in 2007 was 11.75 and in 2008 it is now 8.15 dollars for every 100 dollars of remuneration. [...]
April 29th, 2008 at 8:11 am
[...] 0042 - This classification code is applied to businesses that are primarily engaged in installing landscapes. The classification includes planning, clearing, grading and planting necessary for landscaping operations. It also includes the installation of sod. The clearing and grading done by these insureds is of the fine type necessary for finishing operations and does not result in changes to the contour of the land. This classification cannot be used in Florida along with the class code 9102 unless the operations are conducted as a separate and distinct business. The Florida rate for this classification in 2007 was 10.67 and in 2008 it is now 8.70 dollars for every 100 dollars of remuneration. [...]