To calculate premium, the following payroll is reported:

  1. Gross payroll of employees less overtime extra pay;
  2. Sole Proprietor's working spouse;
  3. Corporate Officer with less than 10% ownership;
  4. Commission payments;
  5. All bonuses, whether anticipated or not;
  6. Pay for holidays, vacations or illness;
  7. Subcontractors (contract labor) who have not provided you with a Certificate of Insurance;
  8. Salary deductions to the employees gross pay for retirement or cafeteria plans; and
  9. Owners (i.e. Sole Proprietor, Partners, Corporate Officers) who elect to be covered for workers' compensation.  The payroll you report is limited as follows:

ARKANSAS (eff 07/01/16)

Minimum Annual Payroll

Maximum Annual Payroll

Sole Proprietor and Partners

$39,500

$39,500

Corporate Officers

$39,000

$156,000

LOUISIANA (eff 07/01/16)

Minimum Annual Payroll

Maximum Annual Payroll

Sole Proprietor and Partners

$45,000

$45,000

Corporate Officers

$44,200

$135,200

MISSISSIPPI (eff 03/01/16)

Minimum Annual Payroll

Maximum Annual Payroll

Sole Proprietor and Partners

$36,100

$36,100

Corporate Officers

$36,400

$119,600

OKLAHOMA (eff 01/01/16)

Minimum Annual Payroll

Maximum Annual Payroll

Sole Proprietor and Partners

$43,800

$43,800

Corporate Officers

$44,200

$176,800

TEXAS (eff 07/01/16)

Minimum Annual Payroll

Maximum Annual Payroll

Sole Proprietor and Partners

$58,200

$58,200

Corporate Officers

$7,800

$62,400

The following is NOT reported:

  1. Tips received by employees;
  2. Subcontractors (contract labor) who have provided you with a Certificate of Insurance;
  3. Dismissal or severance pay except for time worked or accrued vacation;
  4. Payments for active military duty;
  5. Extra pay for overtime:  books and records must be maintained to show overtime extra pay separately by employee.  For example, an employee's regular hourly wage is $10.00 per hour and his overtime wage is $15.00, your records should show total hours worked x $10 as regular pay (payroll to report) and overtime hours x $5 as overtime extra pay (payroll not reported); and
  6. Owners (i.e. Sole Proprietor, Partners, Corporate Officers with 10% or more ownership) who elect not to be covered for workers' compensation.