Cutting out insurance issues in hairdressing and beauty services
A recent sample shows up to 70% of employers in the hairdressing and beauty services industry haven’t got the right level of accident insurance cover for their workers. The audit showed some were under-insured, while others were over-insured and have been given a refund.
Could you be one of those 70% of businesses?
Here are two of the common issues cropping up:
- Businesses need to declare their wages each and every year. Many of these policies are auto-assessed, so when declaring your wages to pay your premium, many employers are simply accepting the information already there as being accurate, when often it’s not. Often our estimates can be incorrect if the business hasn’t grown in line with the consumer price index.
- Did you know that when you declare wages for your workers’ compensation insurance policy that superannuation payments need to be included? If they’re not included, your wages declaration may be too low, and you may be under insured.
WorkCover Queensland Education and Compliance Manager Kerry Hillhouse said 61% of the policies audited had been auto assessed for the past three to eight years.
“Wages need to be declared each and every year. Our systems will automatically show the wages that were paid for the previous year, based on what has been included in the past, and we factor in a 10% rise as an estimate. However, if you hire more staff, or have less staff, then these wages will change from year to year.
“Your best bet is to double check, every year, that the wages shown are your actual wages for the year.”
“It’s coming close to our Premium season, which starts with employers needing to declare their wages from 1 July. So it’s important that this year hairdressing and beauty businesses check their wages and get this right.”
These are the payments which must be included:
- PAYG gross Wages and Salaries paid to all employees
- Payments made to sole traders deemed workers
- Superannuation payments made to all workers
- Any salary sacrificing contributions made (total package component including fringe benefits tax)
- Taxable value (pre-tax) of other fringe benefits
- Any assessable allowances paid or any other entitlements paid having a monetary value
- Board and lodging benefits/payments made or provided
- The taxable value of any benefit provided to the workers.
Keep an eye out for your Premium notice and your opportunity to declare your wages soon. You can also use the links below for guidance to help you get it right. If you’re not sure, you can always give us a call on 1300 362 128.
- Last updated
- 27 January 2017