May 5, 2020: As a result of the COVID-19 virus, the states listed below have established a rule that requires insurance companies to capture and report wages paid to employees who have been furloughed/idled when a state of emergency is declared.
The rule applies to wages paid to employees who have been furloughed/idled for the dates determined by your state’s governmental emergency order. A line will be shown on the completed audit worksheet for this payroll. This is strictly for reporting purposes.
Definition of a furloughed employee: An employee who is still being paid where they have been given a temporary layoff, an involuntary leave, or another modification of normal working hours under a governmental emergency order regardless of when it was earned.
Definition of an idle employee for New York: All employees who did not complete their usual job duties due to the COVID-19 virus but were still paid. The state also has established that employees who performed clerical duties at home due to stay-at-home orders fall under this category.
You are required to keep separate, accurate, and verifiable records in order to report and/or exclude wages paid to employees who have been furloughed/idled. Splitting, estimating, or using a percentage of payroll is not allowed.
Wages of furloughed/idled workers will be reported at audit. If you had a paid employee who was furloughed/idled due to the COVID-19 virus during the dates determined by your state:
NOTE: If accurate, verifiable payroll records are not kept, 100% of the wages are assigned to the employee’s normal classification.
Questions? Contact your Brotherhood Mutual agent or call Customer Service at 800-380-5474.
If you have furloughed/idled wages in multiple states, each state must be listed separately on the audit request.
IMPORTANT INFORMATION ABOUT WORKERS’ COMP COVID-19 CLAIMS
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