See: payer.
Insurance Encyclopedia
Payor benefit (Liability Insurance)
A provision usually found in juvenile policies. This provision states that if the person responsible for paying the premiums, such as the child’s parent, becomes disabled or dies before the child legally becomes an adult, the rest of the premiums are waived.
Payroll audit
An examination of the insured’s payroll records by a representative of the insurer to determine the premium due on a policy for which payroll is the basis.
Payroll audit (Liability Insurance/Workers Compensation)
An examination conducted by a representative of the insurance company. This is done to establish the amount of the last premium due for the most recent policy year.
Payroll Basis
Where business interruption insurance is arranged on a payroll basis the rate charged on salaries and wages is lower than that on gross profit.
Payroll cover
Payroll’ includes salaries, wages and remuneration of all kinds including national insurance, bonuses, holiday pay and other payments pertaining to salaries and wages. Payroll may be insured in full as a part of the gross profit item in a business interruption insurance but the dual basis payroll provides an alternative approach.
Payroll deduction insurance (Life Insurance)
When an employee has authorized his or her employer to deduct insurance premiums from his or her paycheck. The employer then sends the amount deducted on to the insurer periodically.
Payroll deduction plan
Payment system in which an insurance premium is deducted by the employer from the employee’s earnings and sent to the insurance company.
Payroll taxes
Taxes deducted from gross wages and salaries such as those for Social Security (Federal Insurance Contributions Act [FICA]) and unemployment insurance. Also called contributions and taxes.