From October 2006 WorkCover will have the capacity to issue advice to employers and make private rulings. This facility will assist in clarifying for employers, particularly small business, the worker/contractor status of a person, by allowing employers in NSW to seek advice and to apply for a ruling on the status of a worker for premium calculation purposes.

WorkCover has extended the moratorium to include all audits on policy periods that are required to have actual wages declared prior to 31 December 2006 to provide relief for employers who may have under-declared wages, prior to the introduction of private rulings.

The following points should be noted:

• additional premium charged as a result of an audit is still due and payable, even if the late payment fee is waived
• employers who are currently undergoing a wage audit that has identified deemed worker/contractor issues should contact their agent to discuss the findings of the audit prior to the insurer processing it
• late payments fees will not be charged on premium adjustments identified as a result of moratorium related issues for policy periods with actual wages declared prior to 31 December 2006
• when an employer’s records are audited and the business is found to have under-declared its wages for issues other than deemed worker/contractors, late payment fees and interest on overdue premiums will continue to apply
• if an employer disputes the additional premium charged as a result of a wage audit they can lodge an appeal under section 170

Following are some examples relating to the moratorium:

a) employer has been audited and awaiting results of the wage audit where all policy periods subject to the audit have had actual wage declarations lodged prior to 31 December 2006
The total audit period is entitled to the moratorium exemptions. Only late payment fees relating to deemed worker / contractor definitions are subject to the moratorium. Late payment fees will be applied in relation to other issues identified in the audit and remain payable. Once the wage audit is processed the employer can still appeal the additional premium charges

b) employer has been audited and awaiting results of the wage audit where two policy periods subject to the audit have had actual wage declarations lodged prior to 31 December 2006, actual wage declaration for the last policy period was lodged on 30 September 2007
Only the first two policy periods are entitled to the moratorium exemptions. For the first two policy periods of the audit late payment fees will only be applied in relation to non-moratorium related issues identified in the audit and remain payable. The last policy period of the audit will be subject to all normal late payment fee penalties as the employer had the capacity to obtain a private ruling or advice for this period. When the wage audit is processed the employer can still appeal the additional premium charges under S.170.

Employers wishing to make S.170 premium appeal application to WorkCover should write to:

The Manager
Appeals Branch
Locked Bag 2906
LISAROW NSW 2252

For further information please contact the Premiums hotline on (02) 4321 5502.