Premiums for professional liability (E&O) insurance are based on payroll, which is defined as total remuneration for services performed by an employee. In most states, remuneration means money or substitutes for money, including:
Wages/salaries
Bonuses
Commissions
Overtime
Vacation, sick, and/or holiday pay
Tax-deferred payments (cafeteria or 401(k) plans)
Rental value of an apartment or house furnished by the employer
Car or tool allowances
Any other substitutes for wages (such as store certificates, merchandise, etc.)