Reminder: WORKERS' COMPENSATION GUIDELINES FOR Reporting paid furloughed payrolls
Encova will pick up and report payroll for paid furloughed employees at audit. For policyholders to receive premium relief associated with paid furloughed employees, they need to follow the steps below.
- Maintain detailed records separating paid furloughed wages. Estimates or percentages are not acceptable.
- Document that employees are not working.
- Note any adjustment to standard salary, such as reductions or increases (hero compensation), on payroll records.
“Paid furloughed employees” means employees who continue to receive payments during a temporary layoff or an involuntary leave and are not performing any work duties for an employer. If an employee is asked to perform any duties for the employer, the employee is not deemed a paid furloughed employee while they perform duties for the employer. If the employee is not deemed a paid furloughed employee, payroll must be assigned to the classification applicable to the work being performed.
“Payments to paid furloughed employees” means payments made by an employer or public government entity to paid furloughed employees as a result of federal, state and/or local emergency orders, laws or regulations that were issued due to the COVID-19 pandemic. These payments do not include appropriated funds or loans authorized by laws, regulations or public governmental entities that employers use to retain or hire working employees.
Please share this information with your policyholders to keep them informed.