Can I pay employees in cash, materials, parts or other substitutes for payroll to avoid paying workers compensation premiums?
In California, pay is defined as all amounts paid (whether through payroll, in cash or any form of substitutes for money) or given to an individual for services performed.Permanent records should reflect any and all cash payments or the retail value of materials and/or parts given to one who provides services in your day-to-day business operations.These amounts and/or values should be reported as if they were payroll for workers’ compensation purposes.Items to be included or added to payroll: • Bonuses • Retail value of any parts or materials • Gifts • Auto Allowances paid at a flat amount • Lodging value – if lodging is provided instead of pay (some classes of business require lodging value always be added – e.g.
In California, pay is defined as all amounts paid (whether through payroll, in cash or any form of substitutes for money) or given to an individual for services performed. Permanent records should reflect any and all cash payments or the retail value of materials and/or parts given to one who provides services in your day-to-day business operations. These amounts and/or values should be reported as if they were payroll for workers’ compensation purposes. Items to be included or added to payroll: • Bonuses • Retail value of any parts or materials • Gifts • Auto Allowances paid at a flat amount • Lodging value, if lodging is provided instead of pay (some classes of business require lodging value always be added – e.g.
Related Questions
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