New Hampshire Workers' Compensation Payroll Guide
New Hampshire Workers' Compensation
At A Glance
- New Hampshire generally requires employers with one or more employees to maintain workers' compensation coverage, subject to statutory exclusions and exceptions
- New Hampshire employers generally obtain workers' compensation insurance through private insurers or qualify for approved self-insurance when permitted
- Part-time employees may be covered and should not be excluded solely because they work fewer hours
- Seasonal and temporary employees may be covered depending on the employment relationship and applicable law
- A Form 1099, contract, or job title does not by itself determine whether a worker is an independent contractor
- Employees should report workplace injuries to their employer as soon as possible
- Employers have specific obligations concerning workplace injury reporting and workers' compensation claim administration
- Payroll departments should maintain accurate wage, hours-worked, employment, and classification records
- New Hampshire workers' compensation benefits can include medical treatment, temporary disability benefits, permanent impairment benefits, vocational rehabilitation, and death benefits
- Payroll should coordinate wage and employment information with HR, management, insurers, and claims administrators when a workers' compensation claim is filed
Compliance Overview
New Hampshire workers' compensation compliance requires employers to determine which workers are covered, maintain required insurance or approved self-insurance, provide required notices, report workplace injuries, and cooperate with the workers' compensation claims process. Payroll plays an important role because wage, hours, employment, classification, and payment information may be required to administer a claim or calculate benefits.
Payroll departments should establish procedures for identifying workers' compensation-related absences, recording pre-injury and post-injury earnings, tracking modified-duty work, and coordinating payroll changes with HR and the workers' compensation claims administrator.
Employer Requirements
- Maintain workers' compensation coverage as required by New Hampshire law
- Obtain workers' compensation insurance through an authorized insurer or satisfy applicable self-insurance requirements
- Maintain current workers' compensation policy and carrier information
- Post or provide required workers' compensation notices and information
- Establish procedures for reporting and documenting workplace injuries
- Cooperate with insurers, claims administrators, medical providers, and the New Hampshire Department of Labor
- Maintain accurate payroll and employment records
- Provide requested wage and employment information promptly when a claim is administered
Coverage Requirements
New Hampshire generally requires employers with one or more employees to provide workers' compensation coverage, subject to statutory exemptions and special rules. Employers should review the applicable requirements before determining that a particular worker or business is exempt.
- Review whether employees are covered under New Hampshire workers' compensation law
- Review applicable statutory exemptions and exclusions
- Review independent contractor classifications carefully
- Review corporate officer and owner status where applicable
- Review coverage for part-time employees
- Review coverage for seasonal and temporary employees
- Review coverage requirements for employees working in multiple states
- Maintain documentation supporting worker classifications and coverage determinations
Injury Reporting
- Employees should report workplace injuries to their employer as soon as possible
- Employers should establish an internal procedure for promptly documenting reported injuries
- Payroll should record the date an employee stops working because of a workplace injury
- Payroll should coordinate with HR regarding injury-related absences
- Payroll should promptly provide wage and employment information requested by the workers' compensation insurer or claims administrator
- Employers should comply with applicable New Hampshire reporting requirements for workplace injuries and occupational diseases
- Serious workplace incidents should be escalated promptly to the appropriate personnel
Payroll Records
Accurate payroll records are important when administering New Hampshire workers' compensation claims. Payroll should maintain records that allow the employer, insurer, or claims administrator to determine the employee's earnings and employment history.
- Employee name and identifying employment information
- Employment and termination dates
- Job title and classification
- Work location
- Regular wages or salary
- Hours worked
- Overtime
- Bonuses and commissions
- Other compensation and earnings
- Wage and salary changes
- Pre-injury earnings and hours
- Post-injury earnings and hours
- Modified-duty earnings
- Reduced hours following an injury
- Salary continuation and paid leave
- Vacation, sick leave, and PTO used during a claim
Benefit Calculations
New Hampshire workers' compensation benefits vary depending on the type of benefit, the employee's average weekly wage, the nature and extent of disability, medical findings, and other statutory requirements. Payroll should provide accurate wage information rather than independently determining the employee's legal entitlement to benefits.
- Temporary total disability benefits may be available when an employee is temporarily unable to work because of a compensable injury
- Temporary partial disability benefits may apply when an employee returns to work but experiences a qualifying reduction in earning capacity
- Permanent impairment benefits may be available for qualifying permanent conditions
- Permanent total disability benefits may be available for qualifying permanent disabilities
- Death benefits may be available to eligible dependents following a compensable work-related death
- Medical benefits may cover reasonable and necessary treatment related to a compensable workplace injury or occupational disease
- Vocational rehabilitation services may be available to qualifying injured employees who cannot return to suitable employment
Medical Care
New Hampshire workers' compensation can provide medical benefits for treatment related to compensable workplace injuries and occupational diseases. Payroll generally does not administer medical treatment, but it should coordinate with HR and the claims administrator when medical restrictions affect an employee's work status, hours, wages, or return-to-work arrangements.
- Record work absences associated with authorized medical treatment
- Track changes in work status resulting from medical restrictions
- Coordinate payroll information with HR and the claims administrator
- Maintain accurate records of wages paid while an employee is receiving workers' compensation benefits
- Keep medical information confidential and limit access to authorized personnel
Modified Duty
An employee may return to work with medical restrictions following a workplace injury. Payroll should accurately document the employee's modified schedule, earnings, duties, and other compensation changes.
- Track reduced hours
- Track modified or light-duty earnings
- Document changes in pay rates
- Document changes in job duties
- Track overtime and other compensation following the injury
- Coordinate payroll changes with HR and the workers' compensation administrator
Return-To-Work
Return-to-work arrangements can change throughout a workers' compensation claim. An employee may return to regular duties, perform modified work, gradually increase hours, or temporarily stop working again depending on medical restrictions and the circumstances of the claim.
- Record the employee's return-to-work date
- Document work restrictions and modified duties through the appropriate HR process
- Track regular and modified-duty hours
- Track post-injury earnings
- Update payroll records when duties, hours, or compensation change
- Coordinate payroll changes with HR and the claims administrator
Employee Classifications
Correct worker classification is important because workers' compensation obligations depend on the actual employment relationship and applicable New Hampshire law. Employers should not rely solely on a worker's title, contract, or tax reporting method.
- Review employee classifications
- Review independent contractor classifications
- Review part-time and seasonal employees
- Review temporary employees
- Review corporate officers and owners when applicable
- Review workers supplied through contractors or subcontractors
- Maintain documentation supporting classification decisions
- Review classifications when job duties or working arrangements change
Difficult Administrative Areas
- Determining the correct wage information when employees receive overtime, bonuses, commissions, multiple pay rates, or irregular compensation
- Handling employees who work multiple positions, departments, locations, or classifications
- Tracking modified-duty employees whose hours, duties, or compensation have changed
- Coordinating workers' compensation payments with salary continuation, PTO, vacation, sick leave, or other employer-paid compensation
- Maintaining consistent payroll, HR, timekeeping, and employment records
- Responding to wage and employment information requests from insurers and claims administrators
- Managing employees who work in multiple states
- Maintaining subcontractor and worker classification documentation
- Protecting confidential employee wage and workers' compensation information
- Keeping workers' compensation procedures current when New Hampshire requirements change
Common Errors
- Failing to maintain required workers' compensation coverage
- Incorrectly excluding part-time or seasonal employees
- Misclassifying employees as independent contractors
- Failing to report workplace injuries promptly
- Using inaccurate wage or hours-worked information
- Failing to track post-injury earnings
- Failing to document modified-duty work
- Incorrectly treating workers' compensation payments as ordinary wages
- Failing to coordinate payroll changes with HR and the claims administrator
- Using outdated workers' compensation procedures or benefit information
- Failing to maintain records needed for an insurance or workers' compensation audit
Recent Court Cases
- Employers should monitor recent New Hampshire Supreme Court decisions addressing compensability, employee status, disability, medical evidence, and workers' compensation benefits
- Payroll and HR personnel should refer significant legal developments to the employer's legal counsel, workers' compensation insurer, or claims administrator when those decisions may affect claim administration
- Recent decisions may affect how employers evaluate employment relationships, work-related injuries, disability status, and benefit eligibility
Support And Training Resources
Recommended Workers' Compensation Training
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Frequently Asked Questions About New Hampshire Workers' Compensation
- Does New Hampshire require workers' compensation insurance?: New Hampshire generally requires employers with one or more employees to provide workers' compensation coverage, subject to applicable statutory exclusions and requirements
- Are part-time employees covered by New Hampshire workers' compensation?: Part-time employees may be covered when they fall within New Hampshire's workers' compensation system. Part-time status alone should not automatically be treated as an exemption
- Are seasonal employees covered by New Hampshire workers' compensation?: Seasonal employees may be covered depending on the employment relationship and applicable statutory provisions. Seasonal status alone should not automatically be treated as an exclusion
- Are independent contractors covered by New Hampshire workers' compensation?: Worker status depends on the actual relationship and applicable New Hampshire law. A Form 1099, contract, or job title does not by itself determine workers' compensation status
- How quickly should an employee report a workplace injury in New Hampshire?: Employees should report workplace injuries to their employer as soon as possible
- What payroll records are important for a New Hampshire workers' compensation claim?: Important records can include wages, hours worked, overtime, bonuses, commissions, employment dates, wage changes, classifications, pre-injury earnings, post-injury earnings, modified-duty wages, and other compensation information
- What happens when an injured New Hampshire employee returns to work?: An employee may return to regular or modified work depending on medical restrictions and the circumstances of the claim. Payroll should accurately track hours, wages, duties, and compensation changes
- How are New Hampshire workers' compensation benefits calculated?: Benefit calculations depend on the type of benefit, the employee's average weekly wage, disability status, medical findings, and applicable statutory requirements
- Does New Hampshire provide vocational rehabilitation?: New Hampshire workers' compensation may provide vocational rehabilitation services for qualifying injured employees who cannot return to suitable employment
- What are common New Hampshire workers' compensation payroll mistakes?: Common mistakes include failing to maintain coverage, misclassifying workers, delaying injury reporting, maintaining inaccurate wage records, failing to document modified-duty earnings, and failing to coordinate payroll changes with the claims administrator
- Where can employers find official New Hampshire workers' compensation information?: Employers can obtain official information through the New Hampshire Department of Labor and other applicable New Hampshire state resources
