A Workers Compensation Insurance Policy is required by all employers. The annual premium is calculated depending on the industry and level of wages paid. For most employers, your policy runs to 30 June each year – if it doesn’t you should contact your insurer (before the renewal date) to have the policy aligned to the financial year. Following the end of the insured period, you have to declare your actual wages to your insurer.
In the past, the declaration had to be verified by your accountant – but this requirement has been removed. This was not a wise move and we strongly recommend that you continue to have HQB verify your declaration as the calculation of the wage amount is not as straight forward as it seems.
What are some of the common mistakes made with the wages declaration?
- Superannuation payments are often left out
- Fringe Benefits are missed
- Dividends/trust distributions may need to be included in the declared amount
- Some contractor amounts need to be disclosed
- Benefits received not being included
- Apprentice payments not being disclosed
Incorrectly completing your declaration can put you at risk. Work cover engages auditors to periodically audit your declaration and fines can be raised if you get it wrong.
Contact your Accountant at HQB Chartered Accountants to assist in preparing your annual workers compensation wages declaration.
– Ian Hogbin
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are general comments only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.
