California’s 2022 COVID-19 Supplemental Paid Sick Leave law, effective February 19, 2022, does not impact workers’ compensation payroll reporting. Payments made after July 11, 2021 for sick time related to COVID-19 are includable as part of total remuneration.
Link to the law: https://www.dir.ca.gov/dlse/COVID19resources/2022-COVID-19-SPSL-Poster.pdf
Yes, the WCIRB will accept this transaction type (04) using the WCIO WCMED Key Field Change record layout. The data submitter may also choose to continue to make key field changes using the Cancellation (02) and new Original (01) methodology.
It is important to note that when using the Key Field Change record, only the historical data currently present in the database will reflect the key field changes. Any subsequently submitted transactions where the old/original key fields are reported will not be changed until such time as a new Key Field Change record is submitted.
After a workers’ compensation policy expires, the insurer is required to complete an audit of the employer’s payroll records to validate the correct premium amount is charged. The audited payroll information is also reported to the WCIRB and used to calculate an employer’s experience modification. If an insurer notifies the WCIRB that an employer has not complied with the insurer’s request for payroll records, the WCIRB will send a letter to the employer with the subject, “Payroll Records – Not Available.” For more information about the importance of audited payroll records, watch the “Payroll Records – Not Available” video (run time: 10:21).
On the experience rating worksheet, an “E” designation next to the experience modification indicates that the rating excludes unaudited payroll. The policyholder also receives a notification from the WCIRB that their experience modification excludes estimated payroll but includes any losses.
It is a financial incentive for the policyholder to cooperate with the audit. The WCIRB’s ability to produce accurate experience modifications, expected loss rates and advisory pure premium rates is dependent upon accurate audited payroll reporting.
Yes. When the insurer submits a unit statistical report (USR) correction with the audited payroll to the WCIRB, the current and two immediately preceding experience modifications are subject to revision in accordance with the Experience Modification Corrections–Effective Dates rule in the California Workers’ Compensation Experiencing Rating Plan—1995.
Debit experience modifications that exclude unaudited payroll are permitted to be issued even if they do not meet the eligibility threshold, provided the policyholder was experience rated in the immediately preceding year.
The WCIRB will attempt to publish an experience modification excluding the unaudited payroll, but using all of the reported losses. The Experience Rating Plan does not allow the use of estimated or unaudited payroll in the experience modification calculation. When an insurer reports estimated payroll to the WCIRB due to the failure of an employer to cooperate with the audit, the WCIRB sends a letter to the policyholder to inform them of the potential impact and encourages them to cooperate with the audit. If the WCIRB does not receive the audited payroll within 60 days, we will attempt to publish an experience modification excluding the unaudited payroll, but using all of the reported losses.
The fastest way to search for an X-Mod is with the Bureau Number. Once you have logged into WCIRB Connect, enter the Bureau Number into the search field at the top of the screen and click GO. This will bring you straight to the Policyholder Details page and the policyholder's X-Mod history, if they have one.
By selecting the magnifying glass icon located on the toolbar, you can access the Policyholder Search screen. There you can search through the WCIRB's policy records by entering one of the following:
Bureau Number, or
FEIN, or
Policyholder Name and Policy Effective Date range.
Note: The Policyholder Effective Date range does not need to match the actual policy period as it is a search for policies that incept within that date range on our system. We recommend that you include prior years in your search in case there is no current coverage on file for a policyholder.
On the Policyholder Results page, click on the Bureau Number hyperlink to access the Policyholder Details page and the policyholder's X-Mod history. If a policyholder does not qualify for an X-Mod, that RED year will be marked as "DNQ."
As per the DWC eNews dated March 2, 2021, report the FROI record with new Nature of Injury Code 38 (Adverse reaction to vaccination or inoculation) and Cause of Injury Code 83 (Pandemic).
If an employer provides paid sick leave specifically in response to COVID-19 (such as under the Families First Coronavirus Response Act or Executive Order N-51-20), then TD is not owed until that sick leave is used. Employer-paid sick leave in lieu of TD benefits should be reported with Subsequent Reports of Injury (SROI) DN 0003 – Maintenance Type Code “FS” (Full Salary) and SROI DN 0085 – Payment/Adjustment Code “240” (Employer Paid).
When the WCIRB conducts a Test Audit and attempts to verify employee changes and payrolls during the statewide stay-at-home order, the WCIRB field representative will validate that the insurer’s audit documented payrolls that, during the period in question, were paid to employees who were either (1) on paid leave or (2) engaged exclusively in clerical office activities. As part of the Test Audit, the WCIRB field representative will ask the policyholder for any relevant documentation or payroll records, including but not limited to company memos or emails, payment codes reflected in payroll records, or employee time cards or time sheets. Insurers and policyholders are encouraged to work together on the manner in which changes to employee duties during the statewide COVID-19 stay-at-home order are documented.