Verifiable time records
By careful preparation of your payroll report and additional record keeping, you may be able to reduce your workers' comp costs.
Oregon Administrative Rules require you to report wages under the highest rated classification applicable to any part of the worker's duties if you choose not to keep verifiable time records.
In most instances, if you have more than one classification on your insurance policy and your workers shift duties between those classifications, you can use verifiable time records to separate the payroll of the workers and report it in more than one classification on the payroll report.
Verifiable time records must be kept as described below and supported by original entries from other records, including, but not limited to, time cards, calendars, planners, or daily logs prepared by the employee or the employee's direct supervisor or manager. Estimated percentages or ratios will not be accepted.
How to keep verifiable time records
- Record total daily hours worked in each job classification for each worker who works in more than one classification. (You may also use another basis for tracking time, such as daily, weekly, or monthly if you choose.) Create time records at or near the time the work is performed.
- Salaried workers who work in more than one classification must also keep time records. Convert their salary to an hourly, daily, weekly, monthly, or yearly wage.
- The records must include a description of the work performed in each classification used. Please note: Records requiring additional explanation or interpretation are not considered verifiable.
- Total the time worked in each classification for a given pay period and convert this into payroll dollars by classification.
- Allocate, on a pro-rata basis, the payroll for holidays, nonexcludable bonuses, and sick pay (and all other forms of payroll that don't directly apply to a specific classification) to the various classifications applicable to the worker. If you choose not to pro-rate, you must assign this payroll to the highest-rated classification applicable to the worker.
Special circumstances | Farm employers
A farm employer with more than one classification shown on their policy may split employee wages by classification in one of two methods:
- By calculating a ratio of crop acreage in each class compared to the total acreage, or
- By keeping verifiable records of hours spent by each employee in each crop or activity.
Employers may use only one of the two methods; report all employees using the same method.
If you choose not to maintain verifiable hourly records, you must apportion your payroll by acreage percentages. For each assigned class:
- Add all the acreage with crops subject to each class
- Divide the class acreage by the total acreage, including pasture and grazing acres
- Multiply the percentage for each class by the reportable payroll to obtain the payroll to be reported in each class
Read the Oregon Administrative Rule 836-042-0060 (you will need to navigate to the 0060 section) on the division of payroll of individual employees.
For additional information on payroll reporting, call your agent or SAIF representative at 800.285.8525, or email us at firstname.lastname@example.org.