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Definition of Payroll

  • Payroll premium bases are used for Workers Compensation and Commercial General Liability policies.
  • Payroll includes, but is not limited to: hourly and salaried payroll, bonuses, holiday pay, sick pay, vacation pay, commissions, piece work and profit sharing. Also included in the payroll premium base are meals and housing provided for employees, allowances for hand tools, expense allowances not based on receipts, and amounts used to reduce taxable wages such as cafeteria plans and deferred compensation plans.
  • Payroll excludes tips, overtime premium, severance pay (not accumulated vacation or sick pay paid out), expense reimbursements based on receipts, third-party sick pay, excess life insurance, personal use of a company auto and certain company perks (such as incentive vacations, club memberships or tickets to entertainment events).
 
 

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