In defining payroll, we generally follow the guidelines of Medicare wage reporting, with exceptions involving construction industry and corporate officer wages.
We consider the following general items as payroll:
- Gross hourly wages and gross salaries less qualifying deductions for Section 125 cafeteria plan benefits (usually Medicare wages*)
- Sick pay (including third party, excluding workers' compensation)
- Wage continuation - money paid to injured workers in lieu of BWC paying temporary total disability
- Bonus payments, including stock given as a bonus
- All sales commissions
- All tips
- Severance pay
- Overtime pay
- Vacation pay
- Holiday pay
- All shift or holiday differential pay
- All stock gifts- the difference between the fair market value on the date of exercise of the stock option and the price paid for the stock for a non-qualified stock option
- Profit sharing going directly to the employees as payroll
- Medical saving programs which act as savings accounts. These programs allow the employee to receive the unused portion of the money they paid in.
- Any voluntary employee contributions to retirement plans, including 401K
- Reasonable value of board, lodging, house or room rent unless provided for the convenience of the employer, located on the employer’s premises and is a condition of employment
- Contributions to deferred compensation by employees (except for contributions to a governmental 457 plan)
- Expenses exceeding one-third of an employee's normal pay
- Personal use of company car
- Payments to casual/spot labor (see the Contract labor/1099s page)
*Premiums for life insurance over 50k not reportable to BWC.
Who is reportable to BWC?
- All employees – full, part-time and seasonal
- Officers of corporations
- Spot and casual labor
- Owners, partners, incorporated individuals, ministers and officers of family farms who have elected coverage and completed an Application for Elective Coverage (U-3S). See the Elective coverage page for additional information.
- Non-Ohio residents working for out of state companies doing business in Ohio for more than 90 consecutive calendar days. Wages are reportable beginning with the 91st consecutive day.
- Payroll associated with Ohio residents working for out of state companies doing business in Ohio is to be reported for the entire duration of work in Ohio
- Employees who are hired to work specifically in Ohio are reportable, regardless of the state where they were hired
- The 90-Day Rule is not applicable to residents of a foreign country. Out-of-state employers who have foreign employees working temporarily in Ohio must obtain Ohio workers’ compensation coverage, report wages, and pay premiums to BWC for any work performed in Ohio.
- Construction industry payroll reporting
- Reporting for corporate officers
- Reporting for elective coverage
- Contract labor/1099s