The employer levy is calculated by multiplying the total remuneration paid during a month or year by the WorkCover levy rate. The basic formula is remuneration x the levy rate = levy due.
Example: small business
Waymouth Furniture is a family-owned company operating as a new business in the CBD. The business pays approximately $90,000 a year in remuneration to the directors and two part-time workers. It has an industry levy rate of three per cent and the directors estimate that the levy due for Waymouth Furniture is greater than $2,000 per year. Because of this, the business is required to make monthly levy payments, by the 7th of each following month.
The total rate for Waymouth Furniture is 3.318%. This is calculated in the following way:
- Industry levy rate (ILR) 3.000%
- Bonus penalty (0%) 0.000%
- WorkCover levy rate (WLR) 3.000%
- GST (10% of WLR) 0.300%
- OHSW Gov fee (0.6% of WLR) 0.018%
Total rate = 3.318%
Waymouth Furniture pays $7,500 per month in remuneration and the total amount due is calculated in the following way.
- Remuneration for the month $7,500
- Total WorkCover levy rate x 3.318
Therefore the total amount due is $248.85
General information on how levy rates are calculated is included in the Employer FAQs. For help with specific circumstances of your business contact us to make an inquiry or phone the Service Centre on 13 18 55.