Which of the following are assessable earnings for workers' compensation in all jurisdictions?

• A. Gifts and awards (in cash)
• B. Overtime pay
• C. Non-cash gifts
• D. Reimbursed expenses

Answer: (A)

Earnings used to calculate workers’ compensation are the actual cash payments a worker receives for the work they perform. Cash gifts and awards fit this pattern because they are money paid for services rendered, so they are counted in the earnings base in every jurisdiction. Non-cash gifts don’t increase cash income, so they’re not counted as earnings. Reimbursed expenses aren’t earnings either—they simply reimburse costs already incurred and don’t add to the worker’s income. Overtime pay is cash compensation and is typically included, but some jurisdictions have nuances; the one that is universally treated as assessable across jurisdictions is cash gifts and awards.