New NCCI Filing For Paid While Not Working
The National Council of Compensation Insurance (NCCI) submitted state filings in an effort to address the impact of the COVID-19 pandemic on workers' compensation rates. The rule change proposed by NCCI will create a new statistical code for the reporting of payroll for employees that are being paid while not working, and, once in effect, this payroll will be excluded from an employer’s worker’s compensation insurance premium. The proposed filing change will have a retroactive effective date and is expected to be linked to the beginning of the federal state of emergency.
KAIA is working on securing additional details but here is the initial description of the proposal from NCCI:
"NCCI recognizes that circumstances around COVID 19 are extraordinary and warrant an expedited rule change, to address the question of payroll for employees who are being paid but are not working as it relates to the basis of premium. If approved, this rule change will be distinct from “idle time” under our current Basic Manual rules (Rule 2-F-1), and a corresponding statistical code 0012 will be created for reporting this payroll. This payroll will not be used in the calculation of premiums.
Other actions are underway by some companies and individual states to respond to this question. An emphasis on creating as uniform an approach as possible is being pursued for approval by regulators.
The details of the proposed rule changes will be included in a filing that will be submitted to state regulators in all NCCI states.
NCCI stands ready to support you and your staff during this challenging time."
Any questions or concerns?
State Relations Executive