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Is Accumulated Sick Pay Included as Payroll for Workers Compensation Purposes

By April 9, 2014June 8th, 2020Insurance

The definition for Payroll Remuneration for California  Workers Compensation insurance purposes includes: gross wages, salaries, commissions, bonuses, vacation, holiday, sick pay, overtime payments, the market value of gifts and all subsitutes for money earned during the policy period by employees.

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The payment of accumulated or accrued sick leave usually is made upon the employee’s termination and would be considered to be pay to which the employee would have been entitled had s/he remained employed.

It is important for employers to keep detailed accurate payroll records to avoid being over charged on their workers compensation premiums. Be sure to separate regular pay from overtime and double overtime as overtime and double overtime payroll will be converted back to straight time pay if you keep proper records that clearly indicate any overtime pay.

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