INCLUSIONS:

  1. Payroll wages and salaries, including retroactive pay.
  2. Commissions.
  3. Bonuses.
  4. Stock bonus plans — Shares of stock in lieu of cash. (Not stock options)
  5. Extra pay for Overtime — less the premium portion.
  6. Pay for holidays, vacation and periods of sickness. — includes accumulated pay upon retirement
  7. Pay for jury duty.
  8. Pay for funerals, weddings and birthdays.
  9. Piecework- paid a certain amount for each piece produced.
  10. Incentive plans-hourly rate increased as a preset quota is met.
  11. Profit sharing plan-any profit over a certain level will be distributed among employees.
  12. Allowances or payments to employees for Hand or Power tools furnished by employees & used in the business.
  13. Rental value -of house or apartment –value of accommodations (determined by similar actual rentals in area.)
  14. Lodging — other than house or apartment –the value as shown in the insured’s records– if not shown in records do not include.
  15. Meals — value of meals as shown in insured’s records — shown in their payroll. Do not include reimbursements.
  16. Store certificates, catalog accounts or merchandise credits.
  17. Salary reduction plans, Saving Plans, Retirement or Cafeteria plans — 401k/section 125/Aflac
  18. Annuity plans- 403b -the money deducted for the purchase of an annuity contract.
  19. Cash in lieu of insurance.
  20. Auto allowance – a set amount paid to employee with out tracking of mileage/expenses.
  21. Expense reimbursements — if the employer’s records do not substantiate the payments.
  22. Session fees — for entertainers shooting commercials.

EXCLUSIONS:

  1. Tips – gratuities.
  2. Payments to Group Insurance or pension plans — Group term life
  3. Special rewards for invention or discoveries.
  4. Severance pay or dismissal pay.
  5. Payments for Active Military Duty.
  6. Employee Discounts on Goods Purchased from the employer.**
  7. Expense reimbursements –when incurred while conducting the employers business.
  8. Supper money — employees who work late get reimbursement for supper.
  9. Work Uniform allowance.
  10. Third party sick pay.
  11. Company perks —
    1. employer provided vehicle.
    2. flight on an employer provided airplane.
    3. employer provide incentive vacation. — contest winner.
    4. employer provided discount on property or services.
    5. employer provided membership in a country club/social club.
    6. employer provided ticket to an entertainment event.
  12. Employer contributions to employee benefit plans. Employer matching contributions.
  13. Premium pay for overtime.
  14. Short and Long term disability, paid by a 3rd party payer.
  15. Early retirement buyouts.
  16. The tax adjustment that is added to S-corp officers W-2 at year end for value of their health insurance.

**note Flat allowances and expense reimbursements (except for hand tools) may be excluded if all three of the following conditions are met:
1 The noted expense must have happened while completing business for the employer.
2 The insured must maintain separate records for each employee’s expense payment/allowance.
3 Each expense reimbursement/allowance amount must approximate the amount incurred by the noted employee while completing his/her work for the insured.