that an employer ' s records do not substantiate that the expense was incurred as a valid business expense ; and
• Payment for filming of commercials , but this EX- CLUDES subsequent residuals , which are earned by the commercial ' s participants each time the commercial appears in print or is broadcast .
Basically , what could the employee possibly lose if he or she can ' t work ? That amount is included in the audit . But more important than knowing what payroll is included is knowing what payroll is excluded ; so …
What remuneration is EXCLUDED from the audit ?
• Tips & other gratuities ( subject to minimum wage exceptions – meaning if hourly pay plus tips do not equal minimum wage , the amount to make up the difference is included as remuneration in the audit );
• Group Insurance / Pension Plan contributions made by employer ;
• Special rewards for individual invention or discovery ;
• Severance pay ;
• Pay for those on active military duty ;
• Employee discounts ;
• Expense reimbursements – if substantiated by the employer ' s records ;
• Money for meals for overtime work ;
• Work uniform allowance ;
• Sick pay paid by a third party ;
• Employer-provided perks ( company autos , incentive vacations , memberships ); and
• Employer contributions to salary reduction , employee savings plans , retirement or cafeteria plans .
More mistakes are made including payroll which should be excluded . Keep both lists handy , but commit the payroll ones to memory ( well , just be able to recognize them ).
Chris Boggs , CPCU , ARM , ALCM , LPCS , AAI , APA , CWCA , CRIS , AINS , joined the insurance industry in 1990 . He is the VP of Development , Research , and Education for the Big " I " Virtual University . His current duties involve researching , writing , and teaching P & C insurance coverages and concepts to Big " I " members and others in the industry .
Bremen Farmers Mutual Insurance Company
Serving Kansas since 1888
• Homeowners
• Agri – Pak ( Farmowners )
• Preferred Homeowners • Inland Marine
• Dwelling Fire
• Business Owners
• Online quoting , application submission , and document view available
Curtis Holle • President
Becky Scheele • Claims Mgr .
Bryce Peters • Underwriting Mgr .
201 Brenneke St . | Bremen , KS 66412 T : 800.562.5712 | F : 785.337.2414 www . bfmic . com Email : bremen @ bfmic . com
WE BELIEVE IN STRONG PARTNERSHIPS .
Accident Fund partners with independent agents in Kansas and beyond to provide excellent service that puts people first .
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