DIG Insurance & Business Magazine Fall 2020 - Page 25

WORKERS ' COMPENSATION
PREPARE FOR YOUR AUDIT

Stepping Up To Lend A Hand

Adaptations To Workers ’ Compensation Class Codes Help Employers Support Their People .

The pandemic pushed

businesses to make drastic changes — practically overnight . In a time when no one knew what would happen next , employers made in-the-moment decisions to sustain their operations . Some moved to a remote work environment . Others continued compensating their people while they were not performing their normal job functions .
The workers ’ compensation picture evolved in a hurry . As a result , the insurance industry stepped in — and stepped up its efforts to help employers adapt coverage based on their changing businesses .
Since the COVID-19 crisis in March , Deeley has partnered with industry consultants and carriers to stay ahead of changes to workers ’ compensation . We can help employers navigate the new landscape and leverage opportunities .
These important adjustments could help your business thrive in a dynamic environment :
CLASS CODES .
The National Council on Compensation Insurance ( NCCI ) is the industry ’ s largest workers ’ compensation data and rating organization . In April , NCCI created a new WC class code for Paid Furloughed Employees . This gives relief to employers who are doing all they can to keep their workforce intact and help employees maintain their lifestyles . Payments to employees using the new code , 0012 , will be excluded from payroll amounts used in calculating the cost of workers ’ compensation premiums .
ROLE CHANGES .
Employees ’ roles and responsibilities might have changed as businesses adapted . For example , team members working in a retail showroom may have been repositioned to work from home and take orders by phone when the store closed temporarily . Or possibly a truck driver was taken off of the road and moved to office duty as a result of decreased product demand . This gives employers greater flexibility to adjust their work environments as necessary .
COVID-19 CLAIMS .
The insurance industry responded proactively to businesses ’ needs by allowing workers ’ compensation claims attributed to COVID-19 to be coded as Extreme Loss Events . By creating a catastrophic claims code for the pandemic , those filed claims are not held against employers and will not impact ratings and policies at renewal time .
How has your workplace changed over the last few months ? Let ’ s talk about it and discuss what workers ’ compensation adjustments can alleviate economic stress and set you up for a successful renewal . +
When your workers ’ compensation insurance policy was issued , your premium amount was based on estimated payroll figures . Typically , the premium audit process occurs at the end of your policy term and uses your actual payroll to determine your final premium .
HAVE THESE RECORDS AVAILABLE :
❑ Description of the business operation ( s )
❑ List of business location ( s )
❑ Payroll records
❑ Payroll breakdowns by state and classification
❑ Overtime pay breakdowns by state and classification
❑ Individual earnings cards / reports
❑ 941s and Form 940
❑ W-2s and Form W-3
❑ Profit and loss statement
❑ Cash disbursements
❑ Certified payrolls on OCIP / CCIP jobs
❑ Sales journal / cash receipts
❑ Certificates of Insurance for subcontractors
❑ List of officers and their responsibilities
❑ Clerical employees and their job duties
❑ 1099s and Form 1096
❑ Job cost records , contracts , and invoices
❑ General ledger and check register
❑ Federal income tax return
❑ Maryland quarterly unemployment reports
❑ Quarterly fuel tax reports
COVID-19 UPDATE :
If you have paid furloughed employees , keep separate , verifiable records . Otherwise , payroll could be assigned to the classification for work normally performed by the employee prior to any emergency orders issued due to the pandemic .
This article was provided by Chesapeake Employers ’ Insurance Company , Maryland ’ s largest provider of workers ’ compensation insurance .
Matt Jones is the Sales Manager at Deeley Insurance Group . He started his insurance career in 2010 working in personal lines and financial services . Matt is a third generation agent , following in the footsteps of his father and grandfather . He provides leadership , direction and support to the agents , service and support staff on the Deeley team . He lives in Salisbury with wife Kelly , two sons and two daughters . 410.213.5628 • mjones @ deeleyinsurance . com