Workers' Compensation Codes - Calculation Tab

Access this tab using Maintain>Payroll>Workers' Compensation Codes.

Use this tab to select a calculation method for the Workers' Compensation Codes. You can choose from various methods built into the system. When the Workers' Compensation Code is assigned to an employee, the calculation method specified on this tab is used to calculate that employee's workers' compensation.

 

Rate per Hours Worked: Select this method to have the system take the hours associated with all the earning codes (specified in the Earnings to Use for This Calculation box on the Earnings tab), and multiply them by the rate specified in the Rate box of this tab. The result is then multiplied by the Adjustment Factor, if one is supplied.

Rate per Workers' Compensation Hours: Select this method to provide a Rate which is then multiplied by the hours you specify later, on the timesheet, for workers' compensation hours. This result is then multiplied by the Adjustment Factor, if one is supplied. There are no Earning Codes associated with this method.

Rate per $100 Earnings: Select this method to have the system take all earnings on the timesheet (for the Earning Codes specified in the Earnings to Use for this Calculation box on the Earnings tab), and add in the year-to-date subject earnings. This sum is then compared to the Maximum Subject Earnings on this tab.

• If the Maximum Subject Earnings amount is greater than this sum, then the current period subject earnings are used to calculate the workers' compensation amount.
• If the Maximum Subject Earnings amount is less than this sum, then the amount used to calculate workers' compensation is the Maximum Subject Earnings less the year-to-date earnings. The resulting amount is then divided by 100 to get the rate per $100 earnings. The system uses this number to multiply by the Rate and Adjustment Factor indicated.

Rate, Adjustment Factor, Maximum Subject Earnings: Enter the rate, adjustment factor, and, if you selected the Rate Per $100 Earnings calculation method, the maximum subject wages allowed in calculating workers' compensation.

Click Distribution Codes Information to open the Maintain>Payroll>Distribution Codes form where you can create or modify a distribution code. Each time this button is selected a new Distribution Codes form is opened.