Should inactive executive officers be included at the minimum individual payroll?
No, the remuneration of any inactive executive officer(s) is not to be included with the payroll of the risk for premium computation purposes. Inasmuch as, the actual payroll for such executive officers is excludable from premium computation, it follows that those inactive executive officers not receiving any pay would not be included at the minimum individual payroll. See Massachusetts Workers Compensation and Employers Liability Insurance Manual, Part One, Rule V-F. Payroll Limitation for specifics regarding determination of active/inactive executive officer status.
Related Questions
- Many states allow officers to be excluded or have a minimum number of employees before I am required to buy Workers’ Compensation Insurance. Do these follow through to Longshore?
- Should inactive executive officers be included at the minimum individual payroll?
- What is the current payroll limitation applicable to executive officers?
