Every business with an icare Workers Insurance policy needs to declare the amount of wages paid within the year. You're required to lodge a declaration at the end of your workers compensation insurance policy period. This helps make sure you're paying the right premium and that everyone contributes to the scheme.
Depending on how much you’ve paid in wages during the policy period, your premium for the current policy period may be adjusted. You may be required to pay additional premium, or you may receive a refund.
Once your policy has been renewed, you have up to four months to send us your actual wages. If you don’t declare your actual wages on time, we may increase your wages by 30 per cent.
What type of wages are you declaring?
I am declaring actual wages for the previous policy period
I am declaring estimated wages for the current policy period
Declare your actual wages
Within four months of your policy renewal you are required to declare your actual wages for the previous policy period.
You will need a few things to get started.
Do you have the below information handy?
- Policy number
- Period of insurance
- Customer reference code
- Postcode of the business address
Wages declaration guide
Watch our video to find out more about declaring wages, an important part of your policy renewal:
Wage declaration audits
From time to time, icare conducts audits on wage declarations for current and past policy periods, so it’s in your best interest to send your actual wages in on time.
Where a payment to a worker (including deemed workers) is made in lieu of wages (regardless of the terminology used to describe that payment), the payment is counted as wages.
Apprentice wages need to be declared separately to those of other workers, because they entitle you to a premium reduction.
If you have contractors who are deemed workers, include the full contract value (ex GST) in your wages declaration.
If you know the breakdown of labour, tools, plant and materials include the $value as required; if not, just place an ‘x’ in the appropriate column at Section A of the Declaration of Actual Wages Form and icare will use a default % value of the contract payment.
What can wages include?
- overtime, shift and other allowances
- over award payments
- bonuses, commissions
- payments to working directors (including directors' fees)
- payments to pieceworkers
- payments for sick leave, public holidays and the associated leave loadings
- value of any substitutes for wages
- employer paid or payable superannuation contributions (including the superannuation guarantee levy)
- grossed up value of fringe benefits (allowances subject to fringe benefits tax are counted at the grossed up value, that is the value of the benefit multiplied by the relevant Australian Tax Office fringe benefit formula).
- long service leave payments (including lump sum payments instead of long service leave)
- termination payments (lump sum payments in respect of annual leave, long service leave, sick leave and related leave loadings)
- trust distributions to workers where the distribution is in lieu of wages for work done for the trust
- JobKeeper payments (only for hours worked). Please see our COVID-19 information page for more details.
What not to include
The following types of payments do not need to be declared as wages:
- payments to non-working directors
- compensation payments under the Workers Compensation Act 1987
- any GST component in a payment to a worker
- JobKeeper payments where your worker is not working and not earning wages. Please see our COVID-19 information page for more details.
The Wages Definition Manual (PDF, 1.1 MB) provides a comprehensive guide of the wages that should be taken into account when declaring wages.
Non-wage based activities
If you're a taxi operator, you'll need to provide the following additional information:
- a list of plate/s held at the beginning of the period of insurance (including plate number/s)
- purchase/sale dates of any plate/s that have changed hands in both the previous and current 12 months
- indicate if a plate/s are metropolitan or country, and the average number of bailee shifts/week per plate.
Please provide this information and any other supporting information provided by the Taxi Council on a separate sheet and attach it to your Declaration of Actual Wages form.
Non-profit organisations, public benevolent institutions and charities should continue to declare worker benefits that aren't subject to fringe benefits tax at the net value.
Once the worker benefits exceed the Australian Tax Office fringe benefit threshold, the employer must declare the benefit at the grossed-up value.