Employer Question: Gas Bonuses and Workers Comp Insurance

I heard this question recently: If I bonus my employees for the increase in their fuel cost, do I also have to pay for Workers Compensation Insurance on that bonus?

The answer is yes – since the bonus could be used for anything.

But there is a way to avoid this… by reimbursing your employees’ actual expenses. Here’s an example:

• Their gas receipt is $128.47

• You keep the receipt and document your records and reimburse that exact amount of $128.47

• The reimbursement is not payroll and is not subject to Workers Compensation Insurance.

To see a full list of compensation items and further details, go to the WCIRB page and download the California Workers Compensation Uniform Statistical Reporting Plan – September 1, 2021 Edition. Details start on page 336.