August 16th, 2017

New Payroll Reporting Caps

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For the 2017 policy year (7/1/17-6/30/18), BWC has updated the payroll reporting caps for corporate officers. The minimum reportable wage per person/per week is $451, and $1353 is the maximum.

Those affected by the payroll reporting limitation are defined by BWC as such:

Active executive officers of a corporation

Note: Officers are considered active if they are engaged in any work on behalf of the corporation.

Employers listed below who choose elective coverage (because they are not required to carry workers’ compensation insurance).
– Sole proprietors
– Partnership
– Family farm corporate officers
– Limited liability company acting as a partnership
– Limited liability company acting as a sole proprietor
– Individual incorporated as a corporation (with no employees)

Non-officer board members are not subject to the officer minimum/maximum rules.

For the construction industry (those in Industry Group 4), the payroll limitation reporting cap is also $1353. BWC states to “apply the weekly cap on an employee-by-employee basis. In the absence of weekly records, you can only take advantage of the cap on the whole payroll reporting basis. It makes no difference if the employee is full time, part time or seasonal. Section 125 cafeteria plan deductions must be deducted PRIOR to calculating the excess amount. Bonuses paid in the policy year are to spread out among the weeks worked. The weekly construction cap does not affect officers of the corporation or owners with elective coverage since the weekly officer cap is the same as the weekly construction cap.”



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