Workplace accident insurance is compulsory if you have employees. It covers you for the costs associated with a claim by a worker who is injured in the course of employment. In Queensland, accident insurance is regulated by WorkCover Queensland.
New Policies
You can take out a new policy by applying online, making declarations and paying the premium.
Existing Policies – Your declaration is due 31 August 2020
For businesses with existing policies you are required to declare your wages by 31 August 2020.
This declaration consists of actual wages for the past financial year (2020) and an estimate of wages for the current financial year (2021).
Completing your declaration correctly is important to ensure:
- You are properly insured; and
- Your premium is calculated correctly
What is classified as wages?
WorkCover provides a comprehensive guide (see link provided below), which outlines what amounts paid to workers should be declared; however, a brief guide is provided below.
Wages include:
• Total of all PAYG gross salary and wage payments
• All superannuation payments, including salary sacrificed amounts
• Any fringe benefits or other entitlements having a monetary value
• Total of all individual contractors deemed to be workers (excluding GST)
Wages exclude:
• Any allowances or expenses reimbursed for work related expenses
• Lump sum termination payments
• Excess period payments
• Compensation payments reimbursed by WorkCover
• All payments to, or in respect of, Directors / Trustees / Partners
What about JobKeeper?
Additional amounts paid to employees as a result of the JobKeeper Payment Scheme are not declarable as wages.
This applies where workers are stood down without pay, or payments to workers are being topped up so that the employer can access the JobKeeper Payment.
Do I declare payments to contractors?
If an individual is determined to be a worker, then they need to be covered by your WorkCover policy. In some cases contractors can be considered workers.
WorkCover provides a series of Worker determination tests to assist you in identifying contractors who must be included in your declaration.
If you require assistance with any matters in relation to WorkCover, we recommend that you contact the Halpin Partners Team.
