1. (a) The definitions of the terms in section 300.1(a) of this Title are incorporated into and applicable to this Part.
2. (b) Assessments percentage shall mean the percentage set by the New York Workers' Compensation Rating Board to calculate the New York State assessments charge.
3. (c) Cost of compensation shall mean the amount that an employer must pay to secure compensation as set forth in Workers' Compensation Law, section 2(22) and as calculated in accordance with section 308.2 of this Part.
4. (d) Domestic workers shall mean employees engaged exclusively in household or domestic work either performed principally inside or outside the residence. Examples include a cook, housekeeper, laundry worker, maid, butler, companion, nurse, baby-sitter, gardener and private chauffeur.
5. (e) Employer, employee and employment shall have the same meaning as provided in Workers' Compensation Law, section 2, subdivisions (3), (4) and (5).
6. (f) New York State assessments shall mean a charge for the funding of the Special Disability Fund created by Workers' Compensation Law, section 15(8), Reopened Case Fund created by Workers' Compensation Law, section 25-a, and board and interdepartmental expenses pursuant to Workers' Compensation Law, section 151.
7. (g) New York Workers' Compensation Rating Board shall have the same meaning as provided in Workers' Compensation Law, section 2(21).

8. (h) Payroll shall mean money and/or substitutes for money. Payroll shall include any or all of the items in paragraph (1) of this subdivision and shall the exclude the items in paragraph (2) of this subdivision.

   1. (1) Items to be included in the definition of payroll:

      1. (i) wages or salaries including retroactive wages or salaries for time worked and time not worked;
      2. (ii) total cash received by employees for commissions and draws against commissions;
      3. (iii) bonuses including stock bonus plans;
      4. (iv) straight time portion of overtime, excluding extra half time pay associated with time and one-half and double time;
      5. (v) pay for holidays, vacations or periods of sickness;
      6. (vi) payment by an employer of amounts otherwise required by law to be paid by employees to statutory insurance or pension plans, for example the Federal Social Security Act;
      7. (vii) payment to employees on any basis other than time worked, such as piecework, profit sharing or incentive plans;
      8. (viii) payment or allowance for hand tools or power tools used by hand provided by employees either directly or through a third party and used in their work or operations for the employer;
      9. (ix) the rental value of an apartment or a house provided for an employee based on comparable accommodations;
      10. (x) the value of lodging, other than an apartment or house, received by employees as part of their wage, to the extent shown in the employer's records;
      11. (xi) the value of meals received by employees as part of their pay to the extent shown in the employer's records;
      12. (xii) the value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay;
      13. (xiii) payments for salary reduction, employee savings plans, retirement or cafeteria plans (Internal Revenue Code, section 125) which are made through employee authorized salary deductions from the employee's gross pay;
      14. (xiv) wages paid to employees as salary pursuant to the Davis-Bacon Act (40 U.S.C. 3141 et seq.) or prevailing wage laws;
      15. (xv) annuity plans;
      16. (xvi) expense reimbursements to employees to the extent that an employer's records do not substantiate that the expense was incurred as a valid business expense, and a reasonable expense allowance of up to $30 for each day when it can be verified that an employee was away from home on the business of the employer, but the employer did not maintain verifiable receipts for incurred expenses; and
      17. (xvii) payment for filming of commercials excluding subsequent residuals which are earned by the commercial's participant(s) each time the commercial appears in print or is broadcast.

   2. (2) Items to be excluded from the definition of payroll:

      1. (i) tips and other gratuities received by employees;
      2. (ii) payments by an employer to group insurance or group pension plans for employees, other than payments covered by subparagraphs (1)(vi) and (xiii) of this subdivision;
      3. (iii) the value of special rewards for individual invention or discovery;
      4. (iv) dismissal or severance payments except for time worked or accrued vacation;

      5. (v) reimbursed expenses and allowances paid to employees provided all three of the following conditions are met:

         1. (a) the expenses or allowances were incurred in the course of the employer's business;
         2. (b) the amounts are shown separately for each employee in the employer's records; and
         3. (c) the amount of each expense reimbursement or allowance payment approximates the actual expenses incurred;
      6. (vi) payments for active military duty;
      7. (vii) employee discounts on goods purchased from the employee's employer;
      8. (viii) meal allowance for late work;
      9. (ix) work uniform allowances;
      10. (x) sick pay paid to an employee by a third party such as an employer's group insurance carrier which is paying disability income benefits to a disabled employee;

      11. (xi) employer provided perquisites such as:

          1. (a) an automobile;
          2. (b) an airplane flight;
          3. (c) an incentive vacation;
          4. (d) a discount on property or services;
          5. (e) club memberships; or
          6. (f) tickets to entertainment events; and
      12. (xii) employer contributions to salary reduction, employee savings plans, retirement, or cafeteria plans (Internal Revenue Code, section 125), specifically contributions made by the employer, at the employer's expense determined by the amount contributed by the employee.

As used in this Part: