Furlough Pay Related to COVID-19
Workers’ Compensation and General Liability Guidance
Furlough pay related to COVID-19
Guidelines have been established for handling furlough pay, based on rules and regulations provided by state rating bureaus, as well as NCCI**. Please let our agency know if your account may have furlough pay and/or employees working from home, so we can provide guidance on records needed at audit.
Frequently Asked Questions (FAQ's):
Are furlough wages (employee being paid, but not working) included
- in the Workers’ Compensation premium calculation? No
- in the General Liability premium calculation? No
- Is a temporary assignment of workers’ compensation payroll allowed while the employee is working from home? Yes, use WC class code 8871 in most states
- Are all wages reassigned to clerical (working from home) using COVID-19 rules excluded from the General Liability premium calculation? Yes
- Do insureds have to keep accurate and verifiable records to exclude and/or reassign payroll? Yes
**Rules changes are effective 3/1/20 with tentative expiration of 12/31/20. Applies to all states.
**Regardless of funding source (government loans), furlough wages are still excludable. Applies to all states.