Premium savings depend on your business and coverages. The following are some ways that you could save.
- Overtime: Overtime is deducted only if summarized monthly or quarterly in dollar amounts by employee or by classification.
- Employee tips: If declared by employees and identified separately, tips may be excluded from gross wages.
- Payroll reductions: Active military duty, work uniform allowances, third-party sick pay and severance pay (excluding vacation pay), could also lead to reductions.
- Sales: Your liability policy may be based on gross sales. Keep sales separated, if more than one type of operation is based on sales. Contact your agent to be sure.
- Certificates of Insurance: Provide certificates to ensure you’re not unnecessarily charged. Certificates must cover the period when a subcontractor worked for you. Uninsured or inadequately insured subcontractors are charged to you as though they were employees.
- Drivers (for general liability coverage): Employees who are drivers or their helpers may be excluded from chargeable payroll if wages are shown separately. However, additional employees who perform duties other than driving may be placed in the highest rated class describing those duties.
If you have questions about how your specific circumstances will affect savings, please contact your insurance agent.