Payments to Furloughed Non-Working Employees
Payments to paid furloughed employees who perform absolutely no work for you and are not present on your premises during this period must be assigned to Code 0012. This is a statistical code created to report payments to paid furloughed employees and has no rate nor premium.
Payments to paid furloughed employees are excluded only if you keep separate, accurate, and verifiable entries within your payroll records.
If separate, accurate, and verifiable entries are not maintained, payroll is assigned to the classification for work normally performed by the employee before any emergency orders, laws, or regulations issued due to COVID-19.
Who is Considered a Paid Furloughed Employee?
For MA worker’s compensation insurance purposes, any employee who continues to receive payment during a temporary layoff or an involuntary leave and is not performing any work duties for you is considered a paid furloughed employee.
You are required to provide to the insurance company a list of all paid furloughed employees
within 60 days of 7/10/20
(the Bureaus ruling date) to allocate payroll to Code 0012 for paid furloughed workers. This list must include the employee:
- normal workers’ compensation classification
- weekly wage
- furloughed date
- anticipated date of return to work or date returned
Will Furloughed Payroll be Used for Experience Rating?
Payroll to furloughed employees will
be used in the calculation of your Experience Modification or ARAP factor if above required documentation provided.