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.