I heard this question recently: If I bonus my employees for the increase in their fuel cost, do I also have to pay for Workers Compensation Insurance on that bonus?
The answer is yes – since the bonus could be used for anything.
But there is a way to avoid this… by reimbursing your employees’ actual expenses. Here’s an example:
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Their gas receipt is $128.47
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You keep the receipt and document your records and reimburse that exact amount of $128.47
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The reimbursement is not payroll and is not subject to Workers Compensation Insurance.
To see a full list of compensation items and further details, go to the WCIRB page and download the California Workers Compensation Uniform Statistical Reporting Plan – September 1, 2021 Edition. Details start on page 336.