Good News for Work Comp Policyholders:
The WC manual now confirms that the premium basis excludes the amounts paid for the period of time the furloughed employee did not work, provided the employer maintains separate, accurate, and verifiable records. In addition, workers now telecommuting instead of coming into work can be reclassified for the duration of the telework.
To have a clean and easy premium audit, reliable records will be necessary.
For example, some carriers may suggest the following documentation methods:
- If using payroll software, the creation of a COVID-19 row showing hours and wages by employee from the date sent home until they return.
- The creation of a separate log for hours and wages for COVID-19 pay for employees working at home doing clerical work or being paid but not working.