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Included Payroll Cost

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Are you an employer? Or are you a Sole Proprietors/Independent Contractors/Self-Employed Individual?

Included Payroll Cost for Employers

The sum of payments of any compensation with respect to employees that is a:

  • salary, wage, commission, or similar compensation;
  • payment of cash tip or equivalent;
  • payment for vacation, parental, family, medical, or sick leave
  • allowance for dismissal or separation
  • payment required for the provisions of group health care benefits, including insurance premiums
  • payment of any retirement benefit
  • payment of state or local tax assessed on the compensation of the employee

Included Payroll Costs for Sole Proprietors, Independent Contractors, and Self-Employed Individuals

The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a:

  • wage,
  • commission,
  • income,
  • net earnings from self-employment, or
  • similar compensation

and that is in an amount that is not more than $100,000 in one year, as pro-rated for the covered period.

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