Workers Compensation Insurance Obligations

All employers in NSW (except exempt employers) are required by law to have a workers compensation insurance policy. An employer is a business (including an individual) that employs or hires workers on a full-time, part-time or casual basis, under an oral or written contract of service or apprenticeship. In the event of a workplace injury or disease, the insurance policy will provide the worker with weekly benefits and a lump sum payment for permanent impairment. Premiums for this type of insurance are based on three parameters:

• The level of wages* paid during the year
• The industry in which your employees are engaged
• Claims history

*Payments that are included in wages for workers compensation purposes are far greater than ordinary salary and wages, and can cover payments to persons “deemed” to be employees i.e. some contractors.

Employer Records you need to keep include: 

• Records relating to payments to Employees
• Tax File Number declarations and withholding declarations
• Withholding variation notices
• Worker payment records
• PAYG payment summaries
• Annual reports
• Superannuation records, and
• Records of any Fringe Benefits provided

Our team at Bentleys are available to assist you in determining your obligations so that your premium is accurately assessed.
As part of our team we have a number of members who have had detailed involvement in the imposition of this insurance and hence are very familiar with the obligations and also the exemptions.