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Workers’ Compensation Payroll Procedures. What We Will Learn (1). Overview WC payments & the UC supplements Paid and unpaid leaves: Retirement Service Credit Calculating the WC Leave bank Method 1: Web Calculator Method 2: Paper Calculation Sheet Calculating the UC Supplement (SL/VL/ESL)

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what we will learn 1
What We Will Learn (1)
  • Overview
    • WC payments & the UC supplements
    • Paid and unpaid leaves: Retirement Service Credit
  • Calculating the WC Leave bank
    • Method 1: Web Calculator
    • Method 2: Paper Calculation Sheet
  • Calculating the UC Supplement (SL/VL/ESL)
    • Method 1: Time Record Reconciliation
    • Method 2: Option A or Option B form
  • Processing payment and crediting Retirement Service
  • Reconciling the Time Record
what we will learn 2
What We Will Learn (2)
  • Coordinating:
    • Application for other disability benefits:
      • UC Supplemental Disability
      • Other
    • Continuity of Health Insurance:
      • Medical (OP Contingency Fund)
      • Optical
      • Dental
what we will learn 3
What We Will Learn (3)
  • Special Topics:
    • WC Payments to UC Regents
    • WC TD Overpayments
    • UC Payroll Overpayments
    • Delayed & Denied WC Cases
  • Hands-on practice
wc payments
WC Payments
  • TPA pays WC benefits
  • UC integrates those payments into its:
    • Payroll calculations and procedures
    • Benefits procedures
uc supplements
UC Supplements
  • UC policies and employment contracts allow most employees to elect
    • To receive WC only, or
    • To supplement WC with SL, or
    • To supplement WC with SL, then VL.
sl supplement
SL Supplement
  • Supplemental SL brings total income (including WC payments) up to 100% of regular pay plus shift differential.
vl supplement
VL Supplement
  • Supplemental VL brings total income (including WC payments) up to 100% of regular pay plus shift differential.
  • Supplemental VL cannot be used until Supplemental SL is exhausted.
  • VL cannot accrue beyond the VL Max.
esl 1 eligibility
ESL (1): Eligibility
  • When SL/VL exhausts:
    • Most employees are eligible for Extended Sick Leave (ESL).
esl 2 description
ESL (2): Description
  • Extended Sick Leave (ESL)
    • Only exists for WC injuries and illnesses.
    • Maximum of 26 weeks for any one injury.
    • The 26 weeks need not be continuous.
    • Cannot be used before SL/VL is exhausted.
    • Brings Total Income up to 80% of Regular Pay plus Shift Differential.
esl 3 bank vs payments
ESL (3): Bank vs. Payments
  • The ESL Bank is a bank of weeks, not hours.
    • ESL Benefit is paid in HOURS.
    • ESL Bank is adjusted in WEEKS.
  • In a pay period, any use of ESL hours is counted as use throughout all of the weeks in the pay period.
uc supplements when exhausted
UC Supplements: When Exhausted
  • When SL/VL/ESL exhausts:
    • Dept places the employee on LWOP.
    • Dept coordinates:
      • Application for UC Supplemental Disability
      • Continuation of Health Plan insurance
        • Medical (Contingency Fund pays)
        • Optical (Employee self-pays)
        • Dental (Employee self-pays)
benefits that supplement wc
Benefits that Supplement WC
  • SL or SL & VL (paid by Dept)
  • ESL (paid by Dept)
  • UC Supplemental Disability (Liberty Mutual)

Supplements are Sequential: on the date one ends, the next begins.

Supplements Differ: each supplements to a different % of earnings.

uc supplements compared
SL/VL Supplement

Appointment is100%

Distribution is 100%

Brings income to 100%

SL/VL being used

SL/VL accrue at 100%

New Accruals credited upon accrual

Holidays at 100%

Ends when balance(s) = 0

ESL Supplement

Appointment is 100%

Distribution is80%

Brings income to to 80%

SL/VL must be exhausted

SL/VL accrue at 100%

New Accruals credited upon RTW

Holidays at 100%

Ends at 26 week Max

UC Supplements Compared
sl vl election form
SL/VL Election Form
  • Employee must authorize UC to use SL/VL as supplements.
  • Employee makes their election on the SL/VL Authorization form:
    • DMS sends this form to each employee.
    • The employee returns the form to DMS.
    • DMS sends the department an email advising which option the employee chose.
sl vl option c
SL/VL Option C
  • If EE elects not to supplement WC:
    • Place EE on Leave without Pay (LWOP)
    • Follow FMLA procedures and requirements
  • The EE will not be eligible for:
    • ESL
    • UC Supplemental Disability
    • Contingency Fund
    • Other UC benefits
sl vl options a b
SL/VL Options A & B
  • Option A: SL to supplement WC:
    • Change Pay Status to Sub 2
    • Change Time Code to “Z”
  • Option B: SL & VL to supplement WC:
    • Change Pay Status to Sub 2
    • Change Time Code to “Z”
  • If EE is working a reduced schedule
    • Fax weekly Report of Reduced-Schedule Wages to ORS.
uc goals
UC Goals
  • Supplement WC payments with Paid Leave
  • Credit service for WC Leave (if appropriate)
  • Avoid double payment of WC Leave
  • Keep accurate Time Record
  • Keep accurate Paid Leave balances
  • Coordinate application for STD/LTD benefits
  • Coordinate continuity of Health Insurance
each pay period 1
Each Pay Period (1)
  • DMS will email you the WC payments (mid-month & end)
  • Convert them using,
    • Method 1: Web Calculator or
    • Method 2: Calculation Worksheets
  • Calculate the UC supplement, using:
    • Method 1: Time Record Reconciliation Method, or
    • Method 2: Option A or B form
  • Determine Percent Time on Pay Status
    • 1. REG time (Hours Worked, WC Hours, HL, SL, VL)
    • 2. ESL time (if ESL is due)
each pay period 2
Each Pay Period (2)
  • Use the Payroll AP form to:
    • Process the UC Payment and Credit Retirement Service
    • Process the WC pay reduction using DOS code WCR.
  • Reconcile the employee’s Time Record
  • Adjust Accrual Balances and ESL Bank balance
  • Coordinate continuity of STD/LTD benefits
  • Coordinate continuity of Health Insurance
leave paid unpaid
Leave: Paid & Unpaid
  • Leave With Pay (Paid Leave)
    • Holiday Leave
    • Sick Leave
    • Vacation Leave
    • Extended Sick Leave
    • Other
  • LWOP (Unpaid Leave)
wc payments as paid leave
WC Payments as Paid Leave
  • While employee uses SL/VL/ESL
    • Treat WC payments as Paid Leave
  • If EE has returned to reduced-schedule work:
      • If ESL is not exhausted: Treat WC as Paid Leave.
      • If ESL is exhausted: Treat WC as Unpaid Leave:
        • Ignore the WC payments (do not convert them)
  • If EE has not returned to work:
      • Treat WC payments as Unpaid Leave
      • Ignore the WC payments (do not convert them)
      • Place employee on LWOP
hours three types
Hours: Three Types
  • Hours of Work (“REG Time)
  • Hours of Paid Leave
    • Holiday Leave (“REG” Time)
    • WC Leave (“REG” Time)
    • Sick Leave (“REG” Time)
    • Vacation Leave (“REG” Time)
    • Extended Sick Leave (“ESL” Time)
  • Hours of Unpaid Leave (LWOP)
retirement service credit
Retirement Service Credit
  • Paid Leave vs. Unpaid Leave (LWOP)
  • Treating WC payments as Paid Leave (REG time) credits Retirement Service.
  • Treat WC payments as Paid Leave (REG time) when SL/VL/ESL supplements WC.
  • When SL/VL/ESL exhausts, ignore the WC payments.
wc payment schedule 1
WC Payment Schedule (1)
  • Does not match UC Payroll schedule.
  • WC payments may straddle two UC Pay Periods.
  • By the end of the Pay Period there may be some dates WC has not yet paid, but will pay.
wc payment schedule 2
WC Payment Schedule (2)
  • If you do not have WC payment info for all dates in the pay period, choose one:
    • 1. Pay hours worked, but DELAY paying Supplemental SL/VL/ESL, OR
    • 2. Include known payments and adjust next pay cycle for new payments, OR
    • 3. Include known and estimate unknown, then adjust for differences when known.
receiving the wc payment info
Receiving the WC Payment Info
  • DMS emails a spreadsheet twice per month
convert wc payments to
Convert WC Payments to:
  • Hours of Paid Leave (WC Leave Hours)
    • to credit service
  • Dollars by which to reduce pay (“WCR” Dollars)
    • to avoid double-payment

The WC Web Calculator does the conversion for you.

wc payment conversion two methods
WC Payment Conversion: Two Methods
  • Two Methods
    • Worksheet
    • Web Calculator
time record
Time Record
  • Think in Hours not in Dollars.
  • Your goal is to fill the Timesheet with hours until they run out.
  • You will enter WC Hours in the “Other Leave” column.
unreconciled time record
Unreconciled Time Record
  • Start by Determining:
    • PRE-Disability hours payable
    • POST-Disability hours payable
  • Then include:
    • WC Hours
    • Holiday Leave Hours
  • Then you will be able to calculate:
    • Supplemental SL/VL/ESL due
entering hours on the time record
Entering Hours on the Time Record
  • Enter the hours in the following order:
    • Worked hours
    • Holiday hours
    • WC hours (in the “Other Leave” column)
    • SL hours
    • VL hours
    • ESL hours (in the “Other Leave” column)
  • In this way, you “build” a timesheet.
holidays sl vl vs esl vs lwop
Holidays: SL/VL vs. ESL vs. LWOP
  • If holiday falls in the SL/VL period
    • EE gets credit for all hours.
  • If holiday falls in the ESL period
    • EE gets credit for all hours.
  • If holiday falls in the LWOP period
    • EE does not get credit for hours.
new accruals sl vl supplement
New Accruals: SL/VL Supplement
  • While using SL/VL to supplement WC
    • SL & VL continue to accrue at regular rate.
    • Can be used as soon as accrued (next pay period).
    • If EE separates, pay VL.
  • VL Maximum
    • Accrued VL cannot exceed the maximum
new accruals esl supplement
New Accruals: ESL Supplement
  • While using ESL to supplement WC
    • SL & VL continue to accrue at regular rate.
    • EE cannot use until Return to Work.
    • EE can use if Returns to Work on reduced schedule.
    • If EE separates, pay VL.
  • VL Maximum
    • Accrued VL cannot exceed the maximum.
new accruals esl exhausted
New Accruals: ESL Exhausted
  • When the 26 weeks of ESL is exhausted:
    • If EE not working, place on LWOP.
    • SL & VL continue to accrue at regular rate.
    • EE cannot use until Return to Work.
    • EE can use if Returns to Work on reduced schedule.
    • If EE separates, do not pay VL, unless EE had returned to work on a reduced-schedule.
  • VL Maximum
    • Accrued VL cannot exceed the maximum.
holidays and new sl vl accruals return to work at reduced schedule
Holidays and New SL/VL AccrualsReturn to Work at Reduced Schedule
  • If EE returns to work on reduced schedule
    • On holidays, EE gets credit for all hours.
    • SL & VL accrue at regular rate.
    • SL & VL can be used as soon as accrued.
    • If EE separates, pay VL.
  • VL Maximum
    • Accrued VL cannot exceed the maximum.
method 2 option a b form method

Method 2:Option A & B form Method

The forms are self-explanatory.

So, we will not learn this method in class.

option a and b forms
Option A and B forms
  • The Option A and B forms:
    • Credit service for WC payments
    • Compute the UC supplement (SL, VL, ESL)
    • Adjust accrual and ESL bank balances
    • Compute Percent Time on Pay Status
    • Alert you to:
      • Need to coordinate other disability benefits
      • Need to coordinate Health Insurance continuity
step 3 processing payment
Step 3: Processing Payment
  • Filling out the Payroll AP form
    • Percent “REG” Time on Pay Status
    • Percent “ESL” Time on Pay Status
    • “WCR” Dollars to be deducted
step 4 coordinating other disability benefits
Step 4:Coordinating Other Disability Benefits
  • If ESL exhausted:
    • Refer EE to HR Benefits, so EE can:
      • Inquire if eligible for UC Supplemental Disability
      • Apply for same if eligible
    • If EE Has not Returned to Work
      • Place on LWOP
step 5 coordinating health insurance
Step 5:Coordinating Health Insurance
  • If ESL exhausted and no Return to Work
    • Dept refers EE to Campus Payroll, so EE can:
      • Arrange to self-pay Dental plan premiums
      • Arrange to self-pay Optical plan premiums
    • Dept contacts HR Benefits to:
      • Request activation of OP Contingency Fund to pay Medical Plan premiums
special topics td payments to uc regents
Special Topics:TD Payments to UC Regents
  • Before making an initial TD payment, the TPA will call you to inquire whether:
    • UC paid the employee in full using SL/VL.
    • UC paid the employee ESL for the entire pay period (80% of regular pay)
  • If UC paid the employee as above:
    • TPA will make the TD payment payable to the UC Regents.
special topics wc td overpayments 1
Special Topics:WC TD Overpayments (1)
  • The TPA seeks reimbursement directly from the employee for any overpaid WC Temporary Disability.
  • If the employee reimburses the TPA, this may or may not affect UC Payroll, depending upon whether UC paid SL/VL or ESL; or whether the employee received no such payments.
special topics wc td overpayments 2
Special Topics:WC TD Overpayments (2)
  • The TPA cannot unilaterally reduce future TD payments.
  • If the TPA is unable to obtain a TD reimbursement from the employee, they will pursue a credit against other W/C benefits.
  • Any such credit must be judicially approved by the WCAB.
special topics uc payroll overpayments
Special Topics:UC Payroll Overpayments
  • Per UC Accounting Manual
    • A reasonable repayment schedule should be negotiated with the employee.
  • See “Notes” section to this slide for details.
special topics delayed denied wc cases
Special Topics:Delayed & Denied WC Cases
  • If a WC case is Delayed or Denied:
    • TPA will send you a cc of the Notice Letter that they send to the employee.
    • Treat the case as a regular (non-WC) disability case until such time as the WC case is accepted (if it ever is).
  • Refer the employee to HR Benefits to:
      • Inquire into eligibility for UC Supplemental Disability benefits
      • Apply for same, if eligible.
practice

Practice

In this example:

EE elected Option B – SL & VL.

EE will need to use ESL.

practice67
Practice
  • Converting the WC Payments
    • Method 1: Worksheet
    • Method 2: Web Calculator
  • Calculating the UC Supplement
    • Method 1: Time Record Reconciliation
    • Method 2: Option A or B form
  • Reconciling the Time Record
  • Filling Out the Payroll AP form
  • Coordinating other Disability Benefits
  • Coordinating Health Insurance Plan coverage
  • Narrative Summary
steps
Steps
  • Convert WC payments. Use either:
    • Worksheet, or
    • Web Calculator
  • Calculate UC Supplement. Use either:
    • Option A or B form (B in this case), or
    • Time Record Reconciliation Method
  • Process payment using Payroll AP form.
  • Reconcile Time Record and balances.
  • Coordinate disability application & health insurance continuity.