Workers Comp Premium Calculation Change Due to COVID-19 Crisis
Posted by Veirs Insurance on
Important news for any business that has furloughed employees during the COVID-19 crisis, yet has continued to pay them while not working:
National Council on Compensation Insurance (NCCI) has proposed a temporary rule change to allow those payments to be excluded from premium calculation provided the employer keeps “separate, accurate, and verifiable records.”
Those payments would also be excluded from the experience modification rating (EMR) calculation. Depending on an employer’s claim experience in the current policy term, they may want to evaluate if it is worth essentially “buying down” their EMR by including payments to furloughed employees as payroll in their original classification.
Please see our News Brief below, and if you have any questions about how this may affect your business, don’t hesitate to reach out.