Most employers pay for Workers Comp policies each year that are based on how much payroll you have in that year. Some classes have some pretty high rates they pay for their working people. If you work in an office the Workers Comp rates are very low and don’t hurt too much but if you’re for example a Carpentry firm your rates are extremely high each year. Many business owners have laid off staff that were still getting paid but sitting at home. Normally when you have payroll it produces premium on your Workers Comp policy but in this case the payroll really is not justified in producing premium since there is no real exposure.
The
PA Worker Comp Bureau has just created a new class #1212 for Covid payroll that
can be excluded when the audit happens at year end to determine the total
payroll for the year. The employer must keep detailed records on this or
the carrier might try to charge premium. Saving two months of premium on
a Workers Comp policy can be a big thing for many different business owners.
Hope
this helps.
John Tyrol
215 579 9000 x112
