COVID-19 Payroll Recordkeeping for FFCRA and Insurance Audits

Employers should set up separate pay codes in their payroll system for COVID-19-related payments, including not only those made under the Families First Coronavirus Response Act (FFCRA) paid leave provisions but also those made to employees who have taken on different duties with different exposures that would warrant use of different insurance class codes. This will allow an employer to report segments of its payroll by different exposures to its insurance companies for policies such as workers' compensation and general liability.

State governments and relevant insurance regulatory bureaus are still working to develop payroll handling and reporting guidance as it applies to the COVID-19 crisis. Tracking payments as outlined above will enable the insurance company auditor to identify COVID-19-associated payrolls, and ultimately those payrolls will be handled as determined by the state governments and relevant insurance regulatory bureaus.


Our Mission of Service

Our team at North Risk Partners will continue to monitor regulatory updates and guidance related to the COVID-19 outbreak and send you information as it becomes available. We are here to help you through this and face the risk of this virus head on, which to us is about helping you proactively control what you can control with facts and evidence-based information. Thank you for continuing to trust us with your business and doing your part to help protect our communities by controlling the spread of COVID-19.



If you have questions related to this update, please contact your North Risk Partners advisor. Don’t have an advisor? No problem. We’ll help you find one.

This regulatory update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.