State and local governments are requiring many businesses to shut down to slow the spread of Covid-19, yet encouraging these same employers through programs such as the Paycheck Protection Program and other SBA loan programs, to keep employees on the payrolls even though the employees are either not working or not working in their normal capacities. This leaves many question to employers and their PEO partners that provide coverage options for workers’ compensation insurance. One of the most common is:
Are employers required to report payroll and pay premium for exposures from work duties that their employees are temporarily not performing?
The current answer is Yes, unless you are in Wisconsin. Currently, only Wisconsin has issued a rating rule circular allowing for workers compensation premiums to not be charged on non-working employees receiving wages. The California bureau is scheduled to meet on that same issue on April 14, 2020. Other states have instituted workers’ compensation related accommodations as well as it ties to premium payments and policy cancellations.
The National Council on Compensation Insurance (NCCI) covers workers’ compensation rating rules for 34 of the states 16 states operate their own Independent Rating Bureaus. Below is a summary of accommodations in workers’ compensation insurance premium from each rating bureau as well as a link to obtain more information. This situation is very fluid, the links below give you direct access to the sources of the new rules as these rating bureaus contemplate accommodations related to the pandemic.
|California||Meeting scheduled for 4/16/20 to address non-renumeration for furloughed employees, and use of 8810 for employees no longer performing work in their normal class.|
|Indiana||Moratorium restricting workers’ compensation policy cancellations for premium due between 3/19/20 and 5/18/20|
|NCCI (all other states)||None|
|New Jersey||Bulletin 20-04 Encourages insurers to relax due dates for premium payments, extending grace periods and allow for forbearance with regards to cancellations/non-renewals of policies.|
|New York||Executive Order 202.13 Moratorium on cancelling, non-renewing, or conditionally renewing workers compensation policies for 60 days as of 4/1/2020.|
|North Dakota||Calls for the deferred payments of premium through 6/30/20|
|Ohio||Allows for the deferred payments of premium until 6/1/20 including PEO deferments of payments for March and April until 6/1/20, and May payrolls to 6/15/20.|
|Wisconsin||Wisconsin allows for WC premiums to not be charged on non-working employees receiving wages. Circular 3209|