COMPENSATION BOARD

Press, Volume CII, Issue 30041, 28 January 1963, Page 14

COMPENSATION BOARD

Audit Officer Appointed An additional audit Officer for the South Ittand has been appointed by the Workers’ Compensation Board, the chairman (Mr H L. Bockett) has announced. He is Mr P. P. Meffin, who was manager of the State Fire Office until he retired last year. Mr Meffin’s duties will be to check the statements of wages rendered to insurers by employers with the employers’ payroll records. Though for many years there has been provision tor this work to be undertaken, it was not done in New Zealand until two years ago. Mr Brockett said that as the premium rates were governed by regulations, any underpayment by one section of the community would result in other employers paying more than their fair share. The reason for this was that premium rates were calculated by comparing total wages with total claims and to the extent that total wages were understated, the resultant premium rate was increased. '

The effect of this check. Mr Bockett said, would not result in any over-all increase in the premiums collected by insuerrs. “On the contrary, the ultimate result will be that employers now giving correct information would pay less. The result of the many checks so far undertaken clearly indicates the need for this work,” he said.

“Many errors have been discovered, and while most are the result of oversight, genuine mistakes or misunderstandings, this is not always the case. Many overlook the requirement that it is the total earnings, including overtime, bonuses and holiday pay which must be included. Another point which is not fully realised is that all directors who work under a contract of service with a limited liability company are ‘workers,’ and must be insured as such. This is the result of a decision of the Privy Council in 1960,” said Mr Bockett.