Workcover
All employers are required by law to provide Worker's compensation insurance. Employers are liable for workers' compensation claims by their employees. An employer's obligations under the workers' compensation provisions are:
- To accurately calculate insurance premiums or levies based on payroll records
- To ensure that employees are paid their appropriate remuneration after they have made a claim for workers' compensation and
- To maintain appropriate and accurate records.
Employers need to know what is or is not included when reporting remuneration because underestimating amounts paid is considered an offence with substantial penalties and fines applied.
Remuneration includes:
- Gross wages
- Salaries (including overtime and all pay loadings)
- Bonuses
- Commissions
- Allowances
- Items included as part of an employment package
- Fringe benefits within the meaning of Fringe Benefits Tax Assessment Act 1986
- Superannuation benefit paid by an employer in respect of a worker
A more detailed remuneration checklist is available for download.
Once a Workcover insurance policy has been issued, an employer will be expected to pay a regular insurance premium to the insurer. This premium is generally calculated as a percentage of the total amount of salary and wages paid by the employer, multiplied by a factor which represents the risk existing in a particular industry. For 2001/02, the effective industry rate for Victoria ranges from 0.39% to 9.83%.
For more information please contact us