Workers Comp calculation

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  Connie Scott 2 years ago

  Workers Comp calculation

  When calculating a payroll check, do you include commissions and bonuses with hourly wages to calculate the amount of Workers Comp to withhold from a paycheck?

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  Laura Handrick
  

  Moderator

  

  2 years ago

  Hi Connie,

  In general, bonus amounts would be included in gross wages. However, because requirements vary by state, I’ll direct you to the Department of Labor website for Worker’s compensation, that provides a phone number for each state, as I don’t know what state you’re in and hesitate to provide a guess without more information.

  https://www.dol.gov/owcp/dfec/regs/compliance/wc.htm

  Another option for you to consider, is using an online paycheck calculator that includes within it, the state rules. (You input the data, it will provide you information on what the deductions should be). This one is free: http://www.paycheckmanager.com/FreeCal/free_payroll_calculator.aspx

  We provide an article with more information on Worker’s Comp. https://fitsmallbusiness.com/workers-compensation-insurance/

  We recommend small businesses consider using some kind of payroll software. Here are some free/low cost options: Best Free Payroll Software for Taxes, Direct Deposit & More

  Best Free Payroll Software for Taxes, Direct Deposit & More

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