Did Your Business Change Operations Because of Covid?

As businesses pivoted their operations to adapt to Covid restrictions, some of the changes may have an impact on workers comp policies.  Here are a few things to keep in mind when it’s time to do your next audit:

Did job descriptions change?— many folks now work remotely from home, often doing jobs virtually that previously required hands on activity.  For example, some hands-on jobs typically performed on a shop floor may now be able to be done behind a computer.  The job classification could possibly be reclassified to a computer based worker at a lower workers comp.

Were employees furloughed?  Furloughed employees’ salaries are typically excluded from payroll, however payroll records need to reflect the furloughed status to take advantage of this rule.  The records must clearly reflect the division of payroll between pre and post emergency declarations.

Did employees receive hazard pay?  Additional payroll attributed to hazard pay counts towards payroll.  Some employers mistakenly believe hazard pay is treated like overtime- not true.

In 2021, many workers comp audits will be handled online or by mail, with no physical presence by an auditor.  To take advantage of audit rules that may come into play because of Covid changes, it is a good idea to check with your workers comp agency before completing your audit.  Especially now,  knowing the rules will help you avoid overcharges and will work to keep your premiums as low and accurate as possible.