NCCI new class code for furloughed employees

From MTAC partner Bouvier Insurance.

As a result of COVID-19, many businesses have been forced to furlough employees. In some cases, businesses are continuing to pay furloughed employees despite the fact that they are not performing any work duties. The rating bureau for Workers Compensation Insurance, NCCI, has filed a rule change to report payroll differently.

If your insurance carrier has implemented this ruling, payments for paid furloughed employees will be excluded from premium calculations at the time of audit. If your carrier is implementing this ruling, in order to take advantage of this benefit, follow the steps below:

  • It is imperative you keep separate, accurate and verifiable records
  • Track the amount of payroll for paid furloughed employees separately
  • Report payroll for paid furloughed employees under classification 0012

Very important: If paid furlough employee payroll is not tracked and reported separately, these payments will be assigned to the classification code for the work normally performed by the employee.

To see if your carrier is applying this ruling or if you have any questions, please contact us for further review. We are here to help.

Click here to see the filing from NCCI.

Note from MTAC: Bouvier has stated that they are happy to discuss this information with any MTAC members who have questions, even if they are not currently a member of the MTAC/Bouvier/Acadia safety group program. For questions, contact Lindsey Irvin, VP of National Accounts for Bouvier at (860) 232-4491 Ext 148.