Wages or salaries (including retroactive wages or salaries). Refer to NCCI’s User’s Guide for examples.

Total pay received by an employee for commissions and draws against commissions.

Bonuses including stock bonus plans. Refer to Rule 2-D for payroll limitation rules.

Extra pay for overtime work except as provided in Rule 2-C-2.

Pay for holidays, vacations, or periods of sickness. Refer to Rule 2-G-3 for allocation of payroll for employees subject to more than one classification code.

Payment by an employer of amounts that would have been withheld from employees to meet statutory obligations for insurance or pension plans such as the Federal Social Security Act or Medicare.

Payment to employees on any basis other than time worked, such as piecework, profit sharing or incentive plans.

(RESERVED FOR FUTURE USE.)

The rental value of an apartment or house provided to an employee based on comparable accommodations.

The value of lodging, other than an apartment or house received by an employee as part of their pay to the extent shown in the employer’s records.

The value of meals received by employees as part of their pay to the extent shown in the employer’s records.

The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay.

Payments for salary reduction, employee savings plans, retirement or cafeteria plans (IRC 125), health savings accounts, and flexible spending accounts that are made through employee-authorized salary reductions from the employee's gross pay. Refer to NCCI’s User’s Guide for an example.

Davis-Bacon wages or wages from a similar prevailing wage law. Refer to NCCI’s User’s Guide for an example.

Annuity plans.

Expense reimbursements to employees if the employer's records do not confirm that the expense was incurred as a valid business expense. Refer to Rule 2-B-2-h for contractual allowable travel expenses.

Exception:

When it can be verified that the employee was away from home overnight on the business of the employer, but the employer did not maintain verifiable receipts for incurred expenses, a reasonable expense allowance is permitted to be excluded. The allowance is limited to a maximum of $75 per day. The remaining non-verifiable expenses are included as payroll.

Refer to Rule 2-B-2-h for additional information about exclusion of expense reimbursements.

Payment for filming of commercials excluding subsequent residuals that are earned by the commercial's participant(s) each time the commercial appears in any type of media.

Adjustments made by the employer to raise employees’ wages to federal, state, or local minimum wage, whichever is applicable.

Tips or other gratuities received by employees.

Payments by an employer to group insurance or group pension plans for employees, other than those covered by Rule 2-B-1-f and Rule 2-B-1-m.

Payments by an employer into third-party trusts for the Davis-Bacon Act or a similar prevailing wage law provided the pension trust is qualified under IRC Sections 401(a) and 501(a).

The value of special rewards for individual invention or discovery.

Dismissal or severance payments except for time worked or vacation accrued.

Payments for active military duty.

Employee discounts on goods purchased from the employee's employer.

Expense reimbursements to employees if the employer's records confirm that the expense was incurred as a valid business expense.

Reimbursed expenses and flat expense allowances paid to employees may be excluded from the audit only if all three of the following conditions are met:

Meal money for late work.

Work uniform allowances.

Sick pay paid to an employee by a third party such as an employer’s group insurance carrier that is paying disability income benefits to a disabled employee.

Employer-provided perks such as:

Employer contributions to employee benefit plans such as:

These include contributions made by the employer, at the employer's expense, which are determined by the amount contributed by the employee.