COVID-19: Reporting Work Comp Payroll During Furlough

In this difficult time business owners have been forced to make many challenging decisions, such as furloughing their employees.  This information is for those that have decided to continue to pay their employees out of their own pockets during this National Emergency.

The Wisconsin Compensation Rating Bureau (WCRB) has made a decision on how furlough pay will be reported by business owners:

Rule V – Premium Basis – H. Wages For Time Not Worked Wages paid to employees who have been furloughed during the time period where a state-wide emergency order issued by a public official, whether or not the employer is exempted from the emergency order, shall be reported at audit under stat code 0012 – Paid Furloughed Workers During A Governmental Emergency Order Impacting Employment. The payroll during the furloughed period is not assigned to a classification code and no premium is calculated. If an employee is requested to perform any duties for their employer during this time period, they are not deemed furloughed while the task is being completed. If the employee is not deemed furloughed, the payroll will be assigned to the classification applicable to the work usually performed. Payroll records must clearly reflect the division of payroll between pre and post emergency declaration.

It is important to keep detailed records on “pre and post emergency activity” as well as duties performed during furlough.  I recommend beginning this documentation process immediately so you are not scrambling when it’s audit time and unable to remember who was performing duties and when.

Ryan Burns is a Commercial Account Executive with Baer Insurance Services. He specializes in construction and manufacturing. Ryan is a former contractor who takes pride in truly understanding his clients industry.

608.830.5833 | RyanB@BaerInsurance.com