Employers May Exclude Payroll to Employees Not Working for Workers’ Comp: NCCI

By | April 20, 2020

  • April 20, 2020 at 1:14 pm
    retired risk manager says:
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    Exclude claims? How about the extended reporting provisions of the various state’s wc act. In Texas, employees have 30 days after “injury” to report a claim to their employer, and ONE year to report directly to the Division of Workers Compensation. When employees realize that wc benefits are tax free, there will be those that got “hurt” a week or so before the layoff, but just didn’t realize it.

  • April 21, 2020 at 10:47 am
    Bob says:
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    Carriers will need to provide insured’s with specific instructions on how to identify these payments to employees, separate from all other types of earnings, and this may not be possible within the current payroll systems used in today’s business world. In addition and yet to determined by the Federal Government is if these earnings will be subject to with-holding taxes such as FICA, Unemployment, and state and local wage taxes.

    The only way these amounts could even be exclude at the time of final audit would be if the employer paid the virus benefit amounts totally separate from their regular business payroll system. Basically, every employer will need to maintain two separate payroll systems and employees will need to receive two separate W-2 forms.

  • April 22, 2020 at 7:47 am
    Stush says:
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    both comments have merit and only point out that for every such change in policy provisions, the devil is in the details. I would expect that the analysts at NCCI are open to such points. I doubt that this is final and is still a work in progress.

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