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Workers’ Compensation Payroll Procedures

Workers’ Compensation Payroll Procedures

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Workers’ Compensation Payroll Procedures

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  1. Workers’ CompensationPayroll Procedures

  2. 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

  3. 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

  4. 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

  5. WC Payments • TPA pays WC benefits • UC integrates those payments into its: • Payroll calculations and procedures • Benefits procedures

  6. 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.

  7. SL Supplement • Supplemental SL brings total income (including WC payments) up to 100% of regular pay plus shift differential.

  8. 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.

  9. ESL (1): Eligibility • When SL/VL exhausts: • Most employees are eligible for Extended Sick Leave (ESL).

  10. 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.

  11. 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.

  12. 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)

  13. 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.

  14. 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

  15. 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.

  16. 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

  17. 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.

  18. 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

  19. 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)

  20. 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

  21. Leave: Paid & Unpaid • Leave With Pay (Paid Leave) • Holiday Leave • Sick Leave • Vacation Leave • Extended Sick Leave • Other • LWOP (Unpaid Leave)

  22. 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

  23. 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)

  24. 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.

  25. 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.

  26. 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.

  27. STEP 1:Converting the WC Payments Two Methods

  28. Receiving the WC Payment Info • DMS emails a spreadsheet twice per month

  29. 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.

  30. WC Payment Conversion: Two Methods • Two Methods • Worksheet • Web Calculator

  31. Step 2:Calculating the UC Supplement Two Methods

  32. Method 1:Time Record Reconciliation Method Option A or B form not used

  33. 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.

  34. 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

  35. 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.

  36. 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.