Payroll for employees not working may be eligible for exclusion for work comp premium calculation.
This WILL impact your insureds!
Businesses that have suspended operations due to COVID-19 but continue to pay employees who are at home but not working will not have to include the payroll paid to these employees in the calculation of their workers’ compensation premium.
A company that excludes an employee’s payroll can’t report any claims for that employee.
The rule will be retroactive, most likely to March 1. How long the code will remain available will depend on how long shutdowns are in effect.
Advise your insureds
Advise your insureds on the importance of meticulous record keeping. Good record-keeping could save businesses a lot of money.
This change will contribute to return premium audits. This could mean your agency will be required to return some commission to carriers.
Contact your Arlington/Roe Workers’ Compensation broker.