Workers' Compensation Policy Confusion: Are These Wage Discrepancies Acceptable?

Our contractor has submitted a workers' compensation policy for two skilled employees, with gross wages of $40,000 and $35,000. However, the total wages for both during the policy period amount to only $60,000. Is this acceptable? If not, please advise on the error.

Policy Review and Wage Verification

The query can be well answered only after checking the policy and detailed wage breakdown of the employees. Please ensure your site or office location is mentioned in the policy.

In order to optimize the premium amount, sometimes the contractor considers a part of the wages and mentions lower wages on the policy bond. Also, check whether the amount mentioned by you is wages or CTC. If you are talking about the CTC, then the policy wages will be less.

During the renewal of the policy, you can ask the contractor to submit detailed costing and policy terms. Only then should you get the policy renewed. Seniors can shed more light on the matter.