Corporate officers include the president, vice president, secretary, treasurer and any other executive officers who are elected or appointed and designated in minutes of the corporation. BWC considers corporate officers employees of the corporation, and they are covered under the workers' compensation policy. Report the payroll of corporate officers under the manual classification that appropriately describes their duties.
Minimum and maximum payroll reporting requirements
Corporate officers who are active in the organization must report actual wages subject to the minimum and maximum requirement (see table below). Minimum & maximum amounts will change each policy year. Section 125 cafeteria plan deductions must be deducted PRIOR to calculating the reportable amount.
||Minimum reportable wages per person per week
||Maximum reportable wages per person per week
|July 1, 2019 - June 30, 2020
|July 1, 2018 - June 30, 2019
|July 1, 2017 - June 30, 2018
|July 1, 2016 - June 30, 2017
|Jan. 1, 2015 - June 30, 2016
If the corporation is nonprofit, the executive director will be considered a corporate officer. A person who volunteers his or her services as a corporate officer to a nonprofit entity will not be considered an employee for workers' compensation purposes.
S Corporation - Reasonable Wages for Officers
Corporate officers of Subchapter S corporations must report a reasonable wage for the services they perform. If the regular earnings do not constitute a reasonable wage for the services performed, then his/her portion of ordinary income from Federal Income Tax Form 1120S Schedule K-1 (less section 179 depreciation deduction) is to be included to establish a reasonable wage up to the maximum. Net losses are not to be deducted. Ordinary income should be estimated if tax returns are not completed.
Active Corporate Officers
BWC does not consider any minimum number of hours worked as a threshold to making its determination of what constitutes active; any amount of work by the executive officer makes him/her active and subject to the min/max reporting regardless of pay received. Active as used by BWC considers decision making that affects the day to day operations of the business. As used here, day to day operations does not require daily nor any minimum time requirement.
Officers of Multiple Corporations
When an active corporate officer receives wages from more than one BWC policy, he/she is subject to the minimum-maximum reporting requirements for each policy. However, if wages are paid out of only one company, the officer is subject to just the minimum-maximum reporting requirements under that single policy. The officer must report to the classification applicable to the duties performed for all the corporations for which he/she is active.
Board of Directors
Board members of private corporations are not reportable, even when a W-2 is issued for those services. If the board member is also an officer and meets the criteria for an active officer, the wages are reportable.