Recently, the Pennsylvania Compensation Rating Bureau (PCRB) published PCRB Circular No. 1740 addressing the revisions to the Pennsylvania Basic Manual and the Pennsylvania Statistical Manual due to the COVID-19 Pandemic. The changes associated with the circular relate to the classification changes and payroll allocations for those Pennsylvania employers whose business operations have been disrupted by the pandemic. Above is a page of the manual that outlines the change.
To summarize, if you had employees that you were still paying but they were not working, or you had employees whose job duties changed due to telecommuting for a specified time period, the payroll for these employees can be allocated differently, due to the revisions. In order for the payroll to be properly allocated and assigned to the correct classification during the audit, separate payroll records must be kept during the COVID-19 disruption period and should include:
- Names of employees
- Dates of the disruption in operations
- Employees job duties during the disruption period
- Employees payroll during the disruption period
Some sample methods of documentation methods would be:
- If using a payroll software, create a COVID-19 row showing hours and wages by employee from the date sent home until they return
- Create a separate log for hours and wages for COVID-19 pay for employees working at home doing clerical work or being paid but not working
Please note, when separating the payroll for the disruption period, per PCRB directive, employers should NOT include bonuses, vacation, holiday, sick and other benefits compensated/paid during the business disruption. These benefits will be included with the employee’s payroll, under their job classification, prior to the business disruption.
As always, if you have any questions please feel free to give us a call.