Presentation on theme: "1 September 2006 Workers Compensation Payroll Procedures."— Presentation transcript:
1 September 2006 Workers Compensation Payroll Procedures
2 September 2006 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 September 2006 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 September 2006 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 September 2006 WC Payments TPA pays WC benefits UC integrates those payments into its: Payroll calculations and procedures Benefits procedures
6 September 2006 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 September 2006 SL Supplement Supplemental SL brings total income (including WC payments) up to 100% of regular pay plus shift differential.
8 September 2006 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 September 2006 ESL (1): Eligibility When SL/VL exhausts: Most employees are eligible for Extended Sick Leave (ESL).
10 September 2006 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 September 2006 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 September 2006 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 September 2006 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.
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18 September 2006 UC Supplements Compared SL/VL Supplement Appointment is 100% 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 is 80% 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
19 September 2006 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 advising which option the employee chose.
20 September 2006 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
21 September 2006 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.
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23 September 2006 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
24 September 2006 Each Pay Period (1) DMS will 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)
25 September 2006 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 employees Time Record Adjust Accrual Balances and ESL Bank balance Coordinate continuity of STD/LTD benefits Coordinate continuity of Health Insurance
26 September 2006 Leave: Paid & Unpaid Leave With Pay (Paid Leave) Holiday Leave Sick Leave Vacation Leave Extended Sick Leave Other LWOP (Unpaid Leave)
27 September 2006 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
28 September 2006 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)
29 September 2006 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.
30 September 2006 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.
31 September 2006 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.
September STEP 1: Converting the WC Payments Two Methods
33 September 2006 Receiving the WC Payment Info DMS s a spreadsheet twice per month
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35 September 2006 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.
36 September 2006 WC Payment Conversion: Two Methods Two Methods Worksheet Web Calculator
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41 Step 2: Calculating the UC Supplement Two Methods
September Method 1: Time Record Reconciliation Method Option A or B form not used
43 September 2006 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.
44 September 2006 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
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47 September 2006 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.
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50 September 2006 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.
51 September 2006 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
52 September 2006 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.
53 September 2006 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.
54 September 2006 Holidays and New SL/VL Accruals Return 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.
September Method 2: Option A & B form Method The forms are self- explanatory. So, we will not learn this method in class.
56 September 2006 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
57 September 2006 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
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59 September 2006 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
60 September 2006 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
61 September 2006 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.
62 September 2006 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.
63 September 2006 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.
64 September 2006 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.
65 September 2006 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.
September Practice In this example: EE elected Option B – SL & VL. EE will need to use ESL.
67 September 2006 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
68 September 2006 Steps 1. Convert WC payments. Use either: 1. Worksheet, or 2. Web Calculator 2. Calculate UC Supplement. Use either: 1. Option A or B form (B in this case), or 2. Time Record Reconciliation Method 3. Process payment using Payroll AP form. 4. Reconcile Time Record and balances. 5. Coordinate disability application & health insurance continuity.