Businesses with Workers Compensation insurance must declare the amount of wages they actually paid within the policy year. Businesses must submit their Actual Wage Declaration at the end of their workers compensation insurance policy period. Your Adjustment Premium will be recalculated to help ensure each business pays the correct premium and contributes equitably to the scheme. Our Declaring wages guide & support can help make this process easier.
Depending on whether the wages you actually paid during the policy period are higher or lower than the forecast or estimated wages, your premium for the policy period may be Adjusted.
- Higher wages – if your actual wages are higher you will be required to make an additional payment
- Lower Wages – if your wages are lower, you will receive a premium refund
So what is included in Actual wages?
There is something about every business that makes it unique. So what you need to include in your actual wages will be dependent on your business and how you operate.
Wages typically can include:
- Salary/wages
- Overtime, shift and other allowances
- Over award payments
- Bonuses and commissions
- Payments to working directors (including directors’ fees)
- Payments to pieceworkers
- Payments to certain contractors
- Sick leave, public holidays and the associated leave loadings
- Value of any substitutes for wages
- Superannuation contributions (including the superannuation guarantee levy)
- Grossed-up value of fringe benefits
- Long service leave payments
- Termination payments
- Trust distributions to workers where the distribution is in lieu of wages for work done for the trust
- JobKeeper payments (only for hours worked)
What is typically excluded from Actual Wages?
Each workers compensation scheme/legislation can have different interpretations, yet the following payments typically do not need to be declared as wages:
- Non-working director payments
- Shareholder Dividends – where the dividend is not a substitute for wages
- Payments to Pty Ltd Sub-contractors
- Payments made to injured workers as part of their workers compensation claim
- GST component in a payment to a worker
- JobKeeper payments where your worker is not working and not earning wages
Where can I get help?
A great place to start is by contacting our specialists.
Further Information
If you need state/territory-specific information, please refer below:
NSW – icare Wages Definition Manual
Victoria – Remuneration inclusions & exclusions
QLD – WorkCover Queensland Wages Definition Manual
ACT – worksafe ACT wages & earnings Guide
SA – What is remuneration
WA – Declaration of Actual Remuneration/Wages