Understanding a payroll report

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1.  Due date

To prevent cancellation, the payroll report must be received in the Boise office by the due date printed on the report. Boise office hours are 8:00 am to 5:00 pm MT Monday through Friday, except official state holidays.

Please mail your report to:

Or fax the report to (click here BEFORE you fax):

208-332-2288

If you fax your report--please DO NOT send a hardcopy.

2.  Payroll reporting period  

Report all gross wages paid (not accrued) during this time frame. Round payroll to the highest dollar.

3.  Report only the straight time portion of overtime wages

Overtime credit

4.  Report uninsured subcontractors

If you do not have a current certificate of workers compensation insurance for subcontractors, contractors, or other contract labor, report their payments in the class code with regular employee payroll.

Subcontractors and other labor

5.  Class code and description

A brief description of the class code or codes  assigned to your policy and a list of the names of any owners or officers covered on the policy.

6.  Rates

The rate that appears on the payroll report is generally a rate per $100 of gross payroll, however there are exceptions such as aircraft seat surcharges, domestic workers, and board members and commissioners of public employers.

7.  Payroll

Enter the amount of gross payroll for the reporting period in the appropriate classification code.  Please round payroll to the highest dollar. The payroll submitted on the payroll report will be used to determine your premium, so please make sure the information is accurate.  If you have no payroll for the reporting period, you must still complete the report with -0- in the payroll column and return it to our office by the due date.

For additional information see Gross payroll and Overtime credit.

8.  Sign the report

Sign the report and return it to our office by the due date.

Overtime credit

If proper records are kept, overtime wages can be reported as straight time wages.  The employer's records must show separately by employee, and in summary by class of work, the amount paid for overtime.

If an employee works 40 regular hours and 10 overtime hours, multiple the total hours worked (50) by the straight time rate to determine the reportable payroll.

 If overtime is paid at the rate of 1 1/2 time, reduce the total paid overtime by 1/3.

If overtime is paid at the rate of double time, reduce the total paid overtime by one-half.

Subcontractors and other labor

When your business engages in the use of subcontractors, the subcontractor, for workers compensation purposes, may be considered a reportable subcontractor or an independent contractor.   Determining whether a worker is a reportable subcontractor or an independent contractor depends solely on the facts surrounding each work situation.

To avoid unexpected premium charges for subcontractors, you should obtain a Certificate of Insurance for all subcontractors.  If you have questions, please contact the State Insurance Fund for assistance. 

How to report uninsured subcontractors

The National Council on Compensation Insurance (NCCI) has specific rules about how premium for uninsured subcontractors is to be calculated.  If you need to report payroll for an uninsured subcontractor, please call your underwriter or auditor for assistance with determining the correct amount to report.

Owners, partners, and officers

If an owner, partner, or officer is covered on the policy, their name will appear on the payroll report, and their payroll must be reported.  If the owners', partners', or officers' name does not appear on the payroll report, do not include their payroll.

The classification code used to report the covered owners', partners', or officers' payroll is assigned by the underwriter at the inception of the policy or at the time the coverage endorsement is added to the policy.

Covered owners', partners', and officers' reportable payroll is subject to minimum and maximum requirements.  If you have questions about how much payroll to report for covered owners, partners, or officers, contact your underwriter at the State Insurance Fund or send an e-mail to . For additional information click here to read Payroll Reporting Problems from the Spring/Summer 2003 CompUpdate.

If the owners', partners', or officers' names do not appear in the description section of the payroll report, do not report their payroll.

Classification codes

If you have multiple classification codes assigned to your policy, make sure you understand each one so you can separate and report your payroll correctly.  Generally, the entire payroll of an employee is reported to a single classification code, but there can be exceptions.  The National Council on Compensation (NCCI) rules allow for an employee's payroll to be divided between two or more classification codes under certain circumstances in some industries.

If your underwriter or auditor has explained that you are eligible for payroll division, you may divide the payroll between appropriate class codes provided all of the following conditions are met:

• The payroll allocation (number of hours and amount of payroll for each type of work) is shown separately in your original entry records
• The allocation is based on actual payroll incurred in each operation
• The allocation is not based on an estimate or a percentage
• Allocations are totaled and summarized monthly or quarterly by class of work

If you choose not to maintain your records to take advantage of payroll division, please report the payroll for any one employee in the highest rated classification that represents any part of their work.

Class codes 8810 Clerical Office Employees and 5606 Contractor Executive Supervisor are not available for a division of payroll.

If you have any questions, contact your underwriter at or auditor at   For additional information click here to read Payroll Reporting Problems from the Spring/Summer 2003 CompUpdate.

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