Is your Workers compensation wage declaration correct?

Labour Hire organisations are being audited more frequently, particularly in the NSW and Victorian jurisdictions by governing bodies such as icare and WorkCover.

Audits are focusing on whether remuneration has been declared correctly, and the recent review of the NSW scheme alone showed an estimated $60 million in unpaid premiums was attributable to missing or incorrect wage declarations and 75% non – compliance from those employers audited Safe Scope writes.

Penalties for under declaring of Remuneration can be 100% of the difference between the premium calculated based on the Deemed Remuneration and the calculation based on the audit.

Who is my worker for Workers Compensation Remuneration purposes?

Your worker is anyone who works for you or completes work for you as an employee (this includes any apprentice, trainee, labourer or trades assistant).

Your worker may also include a Contractor or Subcontractor who completes work for you, where that person is: a sole trader; a member of a partnership; a member, director, shareholder or employee of a company; a trustee, beneficiary or employee of a trust.

If you hire an independent business and they provide a contractor or subcontractor to complete work for you, then they or anybody who works for that business would not be your worker.

An easy way of figuring this out is to ask yourself:

• Do I have the legal right to control not only the result of the work, but also what and how the work will be done?

• Does the contractor's or subcontractor's business depend on me for its existence?

If you answered no to both questions, then they would not be considered your worker.

What is considered Remuneration?

Remuneration includes wages, salaries, superannuation, and other benefits such as cash and non-cash payments you pay your workers before tax.

Certain types of remuneration are included in the calculation of your insurance premium.

This is known as your rateable remuneration.

The definition of what is considered Remuneration can differ by State.

Safe Scope are experts in Workers Compensation and can assist your business to achieve compliant outcomes.

If you need any advice or assistance with wage declarations or any other Workers Compensation matter, please contact Mark Farrugia on 0437 917 315 or mark.farrugia@safescope .au

We are here to help.