top of page
Search
Writer's pictureM.L. Cutler Blog

Payment Audit Information


Payments to Paid Furloughed Employees

If you continued to pay your employees to stay home and perform no work during a time where your business operations have been suspended because of a federal, state, or local emergency order, you will need to identify the wages your company has paid to your furloughed employees and provide them to your auditor at the time of your audit.   

Payments made to paid furloughed employees may be excluded under certain state orders (NY will include these wages at the clerical rate), if separate, accurate, and verifiable records are available.


Temporary Changes in Your Business Operations

If you have temporarily changed your business operations because of a federal, state, or local emergency order, you will need to identify these changes in business operations as they may affect the rating and classifications on your policy.

  • Employees working from home or performing new/different job duties If your employees are temporarily being paid to work from home or have been reassigned to different work, please indicate these employees on the payroll records provided to your auditor.

Verifiable Records

It is imperative to maintain proper record-keeping with verifiable records including, but not limited to, hardcopy or electronic versions of payroll ledgers, journals, registers, vouchers, or contracts


Incentive Pay

If you are paying your employees an incentive for working during COVID-19, these incentives will be included in the premium calculation


Important Information Needed

Please provide the following to your auditor:

  1. Date furlough began/ended for each employee

  2. Names of the employees who changed duties

    • Date of change

    • New duties

    • Previous and current schedule

3. Date your operations changed

4. New operations your business is performing


Source: Our Partner, Selective Insurance


If you have any questions,please contact us.

12 views0 comments

Comments


bottom of page