Workers' Compensation Codes - Distribution Tab

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

Use this tab to specify how to distribute the workers' compensation expense (if employer paid). Note that this tab is only available if Employer was selected on the Workers' Compensation tab. 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.

 

Distribution of the Employer's Workers' Compensation Expense Should

  • Follow Earnings on Timesheet: Select to have workers' compensation amounts distributed the same way the employee's earnings are distributed. The workers' compensation is distributed to the same Account Codes (Fund and any other account segments except General Ledger) as the employee's earnings. Also, when more than one distribution code is used to distribute the employee's earnings, the workers' compensation is distributed based upon a weighted average of the distributed earnings.
  • Follow Earnings Used to Calculate the Workers' Compensation: Select to limit distribution to the earnings used to calculate the workers' compensation (from the Earning Codes specified on the Earnings tab). Many grants and contracts allow workers' compensation to be charged directly to the funding source. The workers' compensation is distributed to the same Account Codes (Fund and any other account segments except General Ledger) as the employee's earnings. When more than one distribution code is used to distribute the employee's earnings, the workers' compensation is distributed based upon a weighted average of the distributed earnings.
  • Use Distribution Code: Select an existing distribution code to distribute the workers' compensation, which may be entirely or partially distributed to overhead. Use this distribution method if there is one or more funding sources to which you do not distribute workers' compensation (because there is a negotiated rate or workers' compensation is simply disallowed). Distribution codes were set up using Maintain>Payroll>Distribution Codes.