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 Exemption from Workers' Compensation *WC CA Construction 2008

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Any payments of compensation made by WorkCover are not taxable whether made by the employer or the insurer. The exemption is subject to a WorkCover claim being lodged and approved by the insurer. The exemption also covers the first 10 days compensation which the employer is usually required to pay. These amounts are deemed to have been received and as such the exemption can be claimed from day one of the claim. Any top up or make up pay contributed by the employer to top the employee up to their pre-injury earnings does attract payroll tax.

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