1September 2006

Workers’ CompensationPayroll Procedures

UC Payroll Supplements (in Hours) Progressing Through Pay Periods

Worked Hours Worked Hours Worked Hours Worked Hours Worked Hours

WC Hours WC Hours WC Hours WC Hours WC Hours

HL Hours HL Hours HL Hours HL Hours HL Hours

SL Hours

SL Hours

VL Hours

VL Hours

VL Hours

ESL HoursESL Hours

08

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PERIOD

HO

UR

S

ESL Hours 10.2 23.2

VL Hours 22 60 13

SL Hours 60 38

HL Hours 8 8 8 8 8

WC Hours 70 70 70 70 70

Worked Hours 46 46 46 46 46

SL SL & VL VL VL & ESL ESL

2September 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

3September 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

4September 2006

What We Will Learn (3)

Special Topics:WC Payments to UC RegentsWC TD OverpaymentsUC Payroll OverpaymentsDelayed & Denied WC Cases

Hands-on practice

5September 2006

WC Payments

TPA pays WC benefits UC integrates those payments into its:

Payroll calculations and proceduresBenefits procedures

6September 2006

UC Supplements

UC policies and employment contracts allow most employees to electTo receive WC only, orTo supplement WC with SL, orTo supplement WC with SL, then VL.

7September 2006

SL Supplement

Supplemental SL brings total income (including WC payments) up to 100% of regular pay plus shift differential.

8September 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.

9September 2006

ESL (1): Eligibility

When SL/VL exhausts:Most employees are eligible for Extended Sick

Leave (ESL).

10September 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.

11September 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.

12September 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)

13September 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.

14September 2006

UC Payroll Supplements & Liberty Mutual Supplement as Percentage of Pay

Worked Worked Worked Worked Worked Worked

WC WC WC WC WC WC

HL HL HL HL HL HL

SL

SL

VL

VL

VL

ESLESL

LM UC Supp.

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

PERIOD

PE

RC

EN

TA

GE

OF

PA

Y

LM UC Supp. 5.00

ESL 5.00 15.00

VL 15.00 35.00 10.00

SL 35.00 20.00

HL 5.00 5.00 5.00 5.00 5.00 5.00

WC 35.00 35.00 35.00 35.00 35.00 35.00

Worked 25.00 25.00 25.00 25.00 25.00 25.00

SL SL & VL VL VL & ESL ESL LM UC SUPP

15September 2006

There is one Holiday (8 HRS of Holiday Leave).

PAY PERIOD: 1 2 3 4 5 6SL SL & VL VL VL & ESL ESL LM UC SUPP PAID BY SRV CREDIT AFFECTS UC PAYROLL

LM UC Supp. 5.00 LM NO NOESL 5.00 15.00 UC Yes YesVL 15.00 35.00 10.00 UC Yes YesSL 35.00 20.00 UC Yes YesHL 5.00 5.00 5.00 5.00 5.00 5.00 UC Yes YesWC 35.00 35.00 35.00 35.00 35.00 35.00 TPA YES YESWorked 25.00 25.00 25.00 25.00 25.00 25.00 UC Yes Yes

Total: 100.00 100.00 100.00 80.00 80.00 70.00

Employee is working 2 HRS per day on a reduced-schedule.

Period 5: ESL brings Total Income up to 80% of Regular Pay.

UC PAYROLL SUPPLEMENTS & LIBERTY MUTUAL (AS PERCENTAGE OF PAY)AS THEY PROGRESS THROUGH PAY PERIODS

Period 6: UC Supplemental Disability (paid by Liberty Mutual) bring Total Income up to 70% of Regular Pay.

Period 1: SL brings Total Income up to 100% of Regular Pay.Period 2: SL & VL combine to bring Total Income up to 100% of Regular Pay.Period 3: VL brings Total Income up to 100% of Regular Pay.Period 4: VL & ESL combine to bring Total Income up to 80% of Regular Pay.

16September 2006

UC Payroll Supplements (in Hours) Progressing Through Pay Periods

Worked Hours Worked Hours Worked Hours Worked Hours Worked Hours

WC Hours WC Hours WC Hours WC Hours WC Hours

HL Hours HL Hours HL Hours HL Hours HL Hours

SL Hours

SL Hours

VL Hours

VL Hours

VL Hours

ESL HoursESL Hours

08

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PERIOD

HO

UR

S

ESL Hours 10.20 23.20

VL Hours 22.00 60.00 13.00

SL Hours 60.00 38.00

HL Hours 8.00 8.00 8.00 8.00 8.00

WC Hours 70.00 70.00 70.00 70.00 70.00

Worked Hours 46.00 46.00 46.00 46.00 46.00

SL SL & VL VL VL & ESL ESL

17September 2006

WORK DAYSin Pay Period

WORK HOURSin Pay Period

80% of HOURSin Pay Period

23 184 147.20

PAY PERIOD: 1 2 3 4 5SL SL & VL VL VL & ESL ESL PAY TYPE DEDUCT DOLLARS

ESL Hours 10.20 23.20 ESL NoVL Hours 22.00 60.00 13.00 REG NoSL Hours 60.00 38.00 REG NoHL Hours 8.00 8.00 8.00 8.00 8.00 REG NoWC Hours 70.00 70.00 70.00 70.00 70.00 REG YES (DOS Code "WCR"Worked Hours 46.00 46.00 46.00 46.00 46.00 REG No

Total Hours: 184.00 184.00 184.00 147.20 147.20

% of Pay: 100% 100% 100% 80% 80%

Note: Liberty Mutual (UC Supplemental Disability) payments do not affect UC Payroll.

SL, VL, & ESL SUPPLEMENTS (IN HOURS)AS THEY PROGRESS THROUGH PAY PERIODS

Note: The addition of the WC REG Hours is balanced by the subtraction WC Dollars using DOS code "WCR".

Employee is working 2 HRS per day on a reduced-schedule.There is one Holiday (8 HRS of Holiday Leave).

Period 1: SL brings Total Hours up to 100% of the Workhours in the Pay Period.Period 2: SL & VL combine to bring Total Hours up to 100% of the Workhours in the Pay Period.Period 3: VL brings Total Hours up to 100% of the Workhours in the Pay Period.Period 4: VL & ESL combine to bring Total Hours up to 80% of the Workhours in the Pay Period.Period 5: ESL brings Total Hours up to 80% of the Workhours in the Pay Period.

18September 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

19September 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 email advising

which option the employee chose.

20September 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:ESLUC Supplemental DisabilityContingency FundOther UC benefits

21September 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.

22September 2006

23September 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

24September 2006

Each Pay Period (1)

DMS will email 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)

25September 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 employee’s Time Record Adjust Accrual Balances and ESL Bank balance Coordinate continuity of STD/LTD benefits Coordinate continuity of Health Insurance

26September 2006

Leave: Paid & Unpaid

Leave With Pay (Paid Leave)Holiday LeaveSick LeaveVacation LeaveExtended Sick LeaveOther

LWOP (Unpaid Leave)

27September 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

28September 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)

29September 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.

30September 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.

31September 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, OR2. Include known payments and adjust next

pay cycle for new payments, OR3. Include known and estimate unknown, then

adjust for differences when known.

September 2006 32

STEP 1:Converting the WC Payments

Two Methods

33September 2006

Receiving the WC Payment Info

DMS emails a spreadsheet twice per month

34September 2006

35September 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.

36September 2006

WC Payment Conversion: Two Methods

Two MethodsWorksheetWeb Calculator

37September 2006

38September 2006

39September 2006

40September 2006

September 2006 41

Step 2:Calculating the UC Supplement

Two Methods

September 2006 42

Method 1:Time Record Reconciliation Method

Option A or B form not used

43September 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.

44September 2006

Unreconciled Time Record

Start by Determining:PRE-Disability hours payablePOST-Disability hours payable

Then include:WC HoursHoliday Leave Hours

Then you will be able to calculate:Supplemental SL/VL/ESL due

45September 2006

46September 2006

47September 2006

Entering Hours on the Time Record

Enter the hours in the following order:Worked hoursHoliday hoursWC hours (in the “Other Leave” column)SL hoursVL hoursESL hours (in the “Other Leave” column)

In this way, you “build” a timesheet.

48September 2006

49September 2006

50September 2006

Holidays: SL/VL vs. ESL vs. LWOP

If holiday falls in the SL/VL periodEE gets credit for all hours.

If holiday falls in the ESL periodEE gets credit for all hours.

If holiday falls in the LWOP periodEE does not get credit for hours.

51September 2006

New Accruals: SL/VL Supplement

While using SL/VL to supplement WCSL & VL continue to accrue at regular rate.Can be used as soon as accrued (next pay

period). If EE separates, pay VL.

VL MaximumAccrued VL cannot exceed the maximum

52September 2006

New Accruals: ESL Supplement

While using ESL to supplement WCSL & 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 MaximumAccrued VL cannot exceed the maximum.

53September 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.

54September 2006

Holidays and New SL/VL AccrualsReturn to Work at Reduced Schedule

If EE returns to work on reduced scheduleOn 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 MaximumAccrued VL cannot exceed the maximum.

September 2006 55

Method 2:Option A & B form Method

The forms are self-explanatory.

So, we will not learn this method in class.

56September 2006

Option A and B forms

The Option A and B forms:Credit service for WC paymentsCompute the UC supplement (SL, VL, ESL)Adjust accrual and ESL bank balancesCompute Percent Time on Pay StatusAlert you to:

Need to coordinate other disability benefits Need to coordinate Health Insurance continuity

57September 2006

Step 3: Processing Payment

Filling out the Payroll AP formPercent “REG” Time on Pay StatusPercent “ESL” Time on Pay Status“WCR” Dollars to be deducted

58September 2006

59September 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

60September 2006

Step 5:Coordinating Health Insurance

If ESL exhausted and no Return to WorkDept 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

61September 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.

62September 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.

63September 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.

64September 2006

Special Topics:UC Payroll Overpayments

Per UC Accounting ManualA reasonable repayment schedule should be

negotiated with the employee. See “Notes” section to this slide for details.

65September 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 2006 66

Practice

In this example:

EE elected Option B – SL & VL.

EE will need to use ESL.

67September 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

68September 2006

Steps

1. Convert WC payments. Use either:1. Worksheet, or2. Web Calculator

2. Calculate UC Supplement. Use either:1. Option A or B form (B in this case), or2. Time Record Reconciliation Method

3. Process payment using Payroll AP form.4. Reconcile Time Record and balances.5. Coordinate disability application & health

insurance continuity.

69September 2006