State of Iowa – DAS-SAE/Centralized Payroll Procedures related to Workers Compensation Leave 07/01/2016

Workers Compensation policies are stated in the Managers and Supervisors manual, Section 6.20. This narrative is only meant to help with Timesheet and Payroll processing that occurs on HRIS, based on the policies stated in the Managers and Supervisors manual.

If an employee is injured while at work, he/she must work with their supervisor to complete the forms necessary for workers compensation benefits. If the employee is determined to be eligible for workers compensation benefits, Iowa law requires a 24-hour waiting period before benefits begin. There are lots of forms and documentation items to be submitted to Sedgwick upon notification of an injury at work. You will want to work with your Sedgwick representative to ensure that all information is provided as quickly as possible, so that benefits eligibility can be immediately reviewed and determined.

Also note that an FMLA designation may run concurrently with workers compensation leave. You will want to closely coordinate with Reed Group, Sedgwick and DAS on HR/Payroll actions for any employees who are on FMLA leave and also receiving workers comp benefits.

The workers comp waiting period typically commences on the first full day of disability following the date of injury. As stated in Section 6.20.07 of the Mgr/Supervisors manual, the employee may use accrued banked leave for the compensation of lost time during his/her scheduled to work hours that fall within the 3-day (24 hrs accumulated) waiting period. Per Sheryl Jensen-HRE, waiting period hours do not count towards FMLA until Sedgwick approves the work comp claim. On HRIS timesheets, use regular sick, vacation, other banked leave or LWOP time types to record employee waiting period hours. Reason (per HRE) is because a workers comp determination may not yet have been made. Once a w/comp determination is made, then retroactive FMLA hrs adj may be needed.

Note: Per Section 6.20.07, on the date of injury, if the employee cannot complete work for the rest of the day, the State is to pay the employee regular time for any scheduled hours missed on that day. You should record those hours on date of injury on the timesheet as time type 010-Regular Time. In this instance, remarks/comments entered on the timesheet are always recommended to document date of injury and hrs missed from work on that date.

After commencement of lost time benefits begins following the waiting period, the employee will receive payments from Sedgwick until it is determined that he/she is released back to work. Sedgwick benefit payments are reported to all State of Iowa HR/Payroll staff via a weekly email notification process. Contact Sheila Grech at Sedgwick to get on the email distribution list.

When TTD/TPD (lost time) benefits will be paid by Sedgwick, the employee should immediately complete DAS-HRE form called Workers’ Compensation Benefit Election. If the employee has enough banked leave hours available, he/she may elect to supplement his/her workers compensation payments with banked leave. The election can be made at any time during the period in which benefits are received. However, once the election to supplement is made, supplementing shall continue until the selected banked leave is depleted. The employee is responsible for communicating this election to the appropriate personnel staff and for completing any necessary paperwork in a timely manner. DAS-HRE Work Comp Benefit Election form should be kept in Personnel file.

A. If the employee CANNOT OR CHOOSES NOT TO SUPPLEMENT workers compensation benefits with banked leave:

If an employee has no banked leave, he/she cannot be allowed to supplement work comp benefits. If an employee does have enough banked leave, but does not want to supplement, then he/she needs to complete and sign/date the DAS-HRE Benefit Election form and mark the selection that says ‘I decline to supplement my workers compensation benefits at this time’.

An employee who is not supplementing work comp benefits and who is not working any regular hours is NOT considered to be in ‘paid’ status during the work comp leave period. In effect, the EE receives payments from Sedgwick CMS that replaces his/her pay from the State.

If the EE will be on extended leave (for1- 2+ pay periods), the EE should be placed in a leave code (depending on employee circumstances, leave code 54 or 57 may apply). Key P1 type 501 and record detailed remarks to indicate leave period is Work Comp related.

On HRIS timesheets (or PAYN), the supervisor/HRA will enter any hours worked as 010-Regular time, and remaining hours are entered as LWOP, using either time type 268 (WC LWOP) or 938 (FMLA WC LWOP). Detailed comments & documentation should be noted on HRIS timesheet as needed.

Treatment of Work Comp Medical Appt hours for employees who do not supplement:

For an employee who is NOT supplementing and is released to work for part of the workday:

Employee is only to be paid for actual hours worked on HRIS timesheet or PAYN.

For the remaining hours that EE is not released back to work, the EE gets no hours/wages paid on timesheet. These hours should be recorded as either FMLA WC LWOP (time type 938) or WC LWOP (time type 268).

It doesn’t matter if EE is attending a Work Comp Medical Appt or if EE is just going home during the time period that EE is not released back to work. The end result is that since Sedgwick is already paying the employee lost time benefits for those partial hours that he/she not back to work, the employee gets no additional wages paid on HRIS for those same hours.

For an employee who elected to NOT supplement benefits, but has been released back to work full-time:

If EE is attending Work Comp Medical Appts during their regularly scheduled return to work hours, then EE can be paid WC MED APPT hours on HRIS timesheet for the hours that they are away from work. Enter detailed remarks on timesheet to document Dr. Name, Appt hrs (begin/end), Appt type (followup visit, physical therapy, etc).

In these particular instances where employee has been released back to work, you must confirm that the criteria items below are both met:

1) Employee is missing their scheduled to return to work hours to attend the Work Comp Medical Appts, and

2) Employee is NOT being paid any lost time benefits by Sedgwick for the Work Comp Medical Appt hours, because EE has been released back to work.

In this case, wages can be paid to EE for reduced Regular work hours + Work Comp Med Appt hours, because EE will not have received more in pay/work comp benefits than their normal Gross BW pay.

However, if the EE who elects to not supplement does get paid lost time benefits for attending Medical Appt hours, then you must record the missed hrs as LWOP on PAYN/HRIS timesheet. This ensures that the employee will not be paid MORE in wages/work comp benefits than their normal Gross BW pay.

Insurance Billing Adjustments: If EE has elected to not supplement, and if EE is not receiving a biweekly pay warrant, monthly insurance billing adjustments may be needed. Contact Sandy Mezera for assistance with insurance billing adjustments.

Note that per DAS Administrative Rules, the employee will not receive banked leave accruals for the hours that the employee is on a LWOP status. Also, an employee who is not considered to be in ‘paid’ status is not eligible for holiday pay. Furthermore, the employee is not eligible to use any banked leave hours to receive additional pay for the hours missed from work.

Note: Catastrophic leave and/or FMLA rules may force the employer to payout all banked leave hours first, so the EE can become eligible for leave donations. If an employee is receiving catastrophic leave donations, then the combined total of all gross wages paid + Sedgwick benefits paid cannot exceed the employee’s normal gross biweekly pay. HRA’s will need to closely monitor this situation!!

B. If the employee chooses to SUPPLEMENT his/her workers compensation benefits with banked leave:

*Important* An employee election to supplement benefits with paid leave DOES NOT MAKE THE EMPLOYEE WHOLE. This is not the intent of the benefit offered by the State. Employee needs to complete a DAS-HRE Work Comp Benefit Election form, which requires the employee to mark and prioritize selected leave hours that are to be used for supplementing. For purposes of time type/timesheet entry on HRIS, those leave hours will first need to be designated by the Agency as Non-FMLA or FMLA covered.

On a biweekly basis, HRA staff should complete a P-17 form (forms are available on the DAS/SAE website under ‘Centralized Payroll-Payroll Forms’) for all employees who elect to supplement their TTD/TPD lost time benefits.

Note: PPD benefits are not treated as lost time benefits. See Central Payroll if PPD benefits are paid, as procedures are much different in this case!

The P-17 form is only to be completed for employees who elect to supplement work comp benefits. The P-17 form should be submitted to Centralized Payroll for each pay period, as documentation of 1) the employee’s timesheet hours to be allocated, and 2) all P1 actions that need to occur.

The P-17 form is a tool that will assist HRA staff each pay period, in calculating necessary work comp gross pay forfeiture amounts and leave hours to be charged to the employee. The HRA will be responsible for completing/submitting the P-17 forms, and for making all timesheet and P1 entries required. Lisa Elliott in Centralized Payroll will 1) review the P-17 forms, 2) spot-check HRIS timesheet/PAYN entries as time permits, and 3) approve all Work Comp Forfeit pay and Leave Balance Correction P1 entries at PAYL level.

Following is an overview for those employees who elect to supplement their lost time benefits paid:

1) For the time period that the employee is not released back to work due to the injury, the EE will receive full normal biweekly wages on their pay warrant.

2) EE will ‘forfeit’ the Sedgwick benefits they received. A gross pay reduction will be keyed on HRIS to forfeit the Sedgwick pay (P1 type 844).

3) EE should be charged a percentage of total hours that they were scheduled to work (SW) each pay period, by using their selected banked leave hours indicated on the HRE election form. Typically, the employee is charged for leave hours totaling approximately 30-40% of scheduled to work hours as their required ‘supplemental’ portion. The P-17 form will help the HRA determine the appropriate supplemental hours % calculation.

4) EE will earn pro-rated sick/vacation accruals for each PP while on leave. The HRIS Payroll calculation routine automatically makes the pro-rated calculations, based on ‘adjusted gross pay’ as a % of normal gross pay.

For departments not on HRIS time reporting, you will use PAYN to pay the employee + charge specific selected banked leave hours required for supplementing. For those who supplement, you will also need to record the State Share of Work Comp hrs paid in the new field called ‘REG HRS NOT WKD’. Reason: The State share work comp hours are being paid as Regular hours on PAYN, but the EE is not actually working. Effective 10/26/2012, new HRIS time types were developed for use on HRIS timesheets for employees who are on workers comp leave. These time types are classified based on whether the leave hours will be Non-FMLA or FMLA designated. See table below:

C. If the employee has been released to return to work, but doesn’t feel well enough to do so. Or, if EE has reached MMI status and/or lost time (TPD/TTD) benefits are no longer paid during leave period: Employee should be placed in a leave code. EE can elect to use 100% banked leave hours if he/she wants to be paid.

Non-FMLA designated time types:

260 / WORK COMP EE SICK LEAVE / TO CHARGE EE BANKED SICK HRS FOR SUPPLEMENTING BENEFITS (AKA - INJURY LEAVE)
261 / WORK COMP EE VAC LEAVE / TO CHARGE EE BANKED VACATION HRS FOR SUPPLEMENTING BENEFITS
262 / WORK COMP EE COMPTIME / TO CHARGE EE BANKED COMP HRS FOR SUPPLEMENTING BENEFITS
263 / WORK COMP EE HOL COMP / TO CHARGE EE BANKED HOLIDAY COMP HRS FOR SUPPLEMENTING BENEFITS
264 / WORK COMP EE BANKED HOLIDAY / TO CHARGE EE BANKED HOLIDAY HRS FOR SUPPLEMENTING BENEFITS
265 / WORK COMP IUP PERSONAL LEAVE / TO CHARGE EE FOR IUP PERSONAL LEAVE HRS FOR SUPPLEMENTING BENEFITS
266 / WORK COMP STATE PD HOURS / FORMERLY TIME TYPE 330, ‘OTHER LEAVE’. THIS IS STATE SHARE HOURS FOR AN EMPLOYEE WHO IS SUPPLEMENTING, THAT NEED TO BE RECORDED FOR THE REMAINING BALANCE OF THE SW DAY.
267 / WORK COMP MED APPT PAID / FORMERLY TIME TYPE 330, ‘OTHER LEAVE’. THIS IS FOR ANY WORK COMP-RELATED DOCTOR/PHYSICAL THERAPY/OFFICE VISITS/ETC THAT EE IS ENTITLED TO BE PAID FOR.

FMLA designated time types:

930 / FMLA WORK COMP EE SICK LEAVE / TO CHARGE EE BANKED SICK HRS FOR SUPPLEMENTING BENEFITS (AKA - INJURY LEAVE)
931 / FMLA WORK COMP EE VAC LEAVE / TO CHARGE EE BANKED VACATION HRS FOR SUPPLEMENTING BENEFITS
932 / FMLA WORK COMP EE COMPTIME / TO CHARGE EE BANKED COMP HRS FOR SUPPLEMENTING BENEFITS
933 / FMLA WORK COMP EE HOL COMP / TO CHARGE EE BANKED HOLIDAY COMP HRS FOR SUPPLEMENTING BENEFITS
934 / FMLA WC EE BANKED HOLIDAY / TO CHARGE EE BANKED HOLIDAY HRS FOR SUPPLEMENTING BENEFITS
935 / FMLA WC IUP PERSONAL LEAVE / TO CHARGE EE FOR IUP PERSONAL LEAVE HRS FOR SUPPLEMENTING BENEFITS
936 / FMLA WORK COMP STATE PD HRS / FORMERLY TIME TYPE 330, ‘OTHER LEAVE’. THIS IS STATE SHARE HOURS FOR AN EMPLOYEE WHO IS SUPPLEMENTING, THAT NEED TO BE RECORDED FOR THE REMAINING BALANCE OF THE SW DAY.
937 / FMLA WORK COMP MED APPT PAID / FORMERLY TIME TYPE 330, ‘OTHER LEAVE’. THIS IS FOR ANY WORK COMP-RELATED DOCTOR/PHYSICAL THERAPY/OFFICE VISITS/ETC THAT EE IS ENTITLED TO BE PAID FOR.

For an employee who has elected to supplement work comp benefits with paid leave, the net result is that full biweekly pay is being recorded and paid as wages to the employee during the workers comp leave period. It is recommended that comments be used on the HRIS timesheets to fully document the employee’s workers compensation leave details for each pay period.