Verifiable time records (VTRs)
Here's how and why you should keep strong VTRs.
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Overview
If you keep VTRs, you may pay less. In most instances, if you have more than one classification on your insurance policy and your workers shift duties between those class codes, you can use VTRs to separate the payroll of the workers and report it in more than one classification on the payroll report. This can lower your premium.
If you do not keep VTRs, you may pay more. Oregon Administrative Rules require you to report wages under the highest rated classification for any part of the worker's duties if you choose not to keep VTRs. This can raise your premium.
How to keep VTRs
Estimated percentages or ratios will not be accepted
Verifiable time records must be supported by original entries from other records. This includes, but is not limited to, timecards, calendars, planners, daily logs prepared by the worker or the worker's direct supervisor or manager.
Record accurately and in a timely manner
Record total daily hours worked in each job class code for each worker who works in more than one classification. You may also use another basis for tracking time, such as daily, weekly, or monthly if you choose. Create time records at or near the time the work is performed.
Salaried workers must record time
Salaried workers who work in more than one class code must also keep time records. Convert their salary to an hourly, daily, weekly, monthly, or yearly wage.
Personal election and covered owners
If the owner is assigned more than one classification, you must keep VTRs or report them under the highest-rated classification.
Include a description of work done
The records must include a description of the work for each class code used. Note: Records requiring additional explanation or interpretation are not considered verifiable.
Total and convert into payroll dollars
Total the time worked in each class code for a given pay period and convert this into payroll dollars by classification.
Prorate payroll without a class code
Prorate payroll for holidays, nonexcludable bonuses, and sick pay to the various class codes applied to each worker. Also do this for all other forms of payroll that do not directly apply to a specific class code. If you do not prorate, you must assign this payroll to the highest-rated class code applied to the worker. Many businesses use time-tracking software to help maintain verifiable time records.
See a blank verifiable time record
Download in PDF or Word. The format in this sample document is suggested, not required.
See Oregon Administrative Rule 836-042-0060 for more. Navigate to the 0600 section to learn more about the division of payroll of individual workers.
Farm employers
Class code 0083 employers must maintain verifiable time records. Please note that apportioning payroll by acreage is not permitted for cattle handling under class code 0083.
How to split farm worker wages by class code
Farm employers with multiple class codes can split worker wages in one of two ways (but you must use the same method for all workers):
- By acreage: Calculate the percentage of total farm land each type of crop takes up.
- By hours: Keep records of how many hours each worker spends on each type of crop or activity.
If you don't keep time records, you must use the acreage method:
- Add up the land for each type of crop.
- Divide each crop's land by the total farm land (including pasture and grazing areas).
- Multiply this percentage by the total payroll to find out how much to report for each type of work.
Disclaimer: This information is intended to help you fulfill your payroll reporting requirements accurately and easily. While every attempt is made to ensure that this information is accurate, complete, and current, SAIF makes no express or implied representation as to the accuracy, completeness, currency, reliability, or suitability of the information at any given point in time or for any purpose. You should independently confirm current payroll reporting requirements at the primary sources: Oregon Revised Statutes, Oregon Administrative Rules, and the manuals published by the National Council on Compensation Insurance (NCCI).