How do you apply workers compensation payroll for a contract trucking (owner/operator) when they get paid by the load?

A question asked about Texas workers compensation rules.

How much of that cost for the load should be included in the workers comp code for payroll?

Answers to these types of questions about workers compensation can sometimes be very hard to uncover. And usually the first place to start is with the workers comp manual for the individual state in which the question pertains. 

According to the Texas Workers Compensation and Employers Liability Manual, under the paragraph entitled “Vehicles Under Contract,” to paraphrase, you’ll find that the labor part of payroll for drivers who provide vehicles under contract are to be included as payroll of the insured employer. It goes on to explain that if the “labor part” of the pay cannot be determined then 1/3 of the contract price paid by the employer should be considered payroll.

While the answer seems to be obvious, it is always wise to verify with the insurance carrier and the state authority their interpretation of the rules and how they will apply them to the insureds policy and audit.

Hope this helps you out!

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