Workers' Compensation Codes - Workers' Compensation Tab

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

Use this form to add a new Workers' Compensation Code or edit an existing one. Note that Workers' Compensation Codes are used later when entering timesheets and manual checks (Timesheets and Activities>Payroll> menus), and when reviewing/modifying calculated payroll (Activities>Payroll> menu). Furthermore, the system uses the Workers' Compensation Codes specified when it is calculating pay, creating the accounting entry for payroll, calculating and reporting tax reports, and reporting.

A General Ledger expense and liability account must be assigned on this tab, in order to create an accounting entry. Use the Distribution tab to indicate the distribution of the worker's compensation expense across all other segments.

 

Code: Enter a Workers' Compensation code. You should make the first eight characters of the code unique so that the check stub displays a useful identifier. We recommend limiting your entry to strictly alphabetic characters (A through Z) or numeric characters (0 through 9), and avoiding the use of symbols.

Status: Specify the status of the Workers' Compensation Code. When creating a new code, accept the default status, A (Active), or select I (Inactive) or D (Discontinued) from the drop-down list. The status can be changed at any time. Below are valid status entries and their descriptions:

  • Active - An active status allows payroll to be processed using this code.
  • Inactive - Set a code to inactive when it is not used regularly, but it could be used at some point. A warning message appears when attempting to use an inactive code. The warning message is for notification only; the code can still be used in a payroll process.
  • Discontinued - Designate a code as discontinued when it is no longer being used. The system does not allow payroll to be processed using a code with a discontinued status.

Title: Enter the title of the Workers' Compensation code.

Aatrix® Tax Type: Accept the default of <None>, or select a state to be associated with this Workers’ Compensation code for Aatrix payroll reporting.

Paid By Employer, Employee: Select which party is paying the workers' compensation amount for this code—the employer or the employee.

Show Code on Check Stub: If the Employer is paying the workers' compensation, select this check box to display the Employer Workers' Compensation Code information below the Employee Workers' Compensation Code information on the check stub.

Expense Account: Select the General Ledger expense account for this Workers' Compensation code. The account must be an existing General Ledger account that is not a subledger-type account. The account must have a status of Active or Inactive. This box is only available if the Employer pays the workers' compensation.

Liability Account: Enter the General Ledger liability account for this Workers' Compensation code. The account must be an existing General Ledger account that is not a subledger-type account. The account must have a status of Active or Inactive.

  • 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.
  • Enter as many Workers' Compensation Codes as needed and apply as many as are necessary to each employee's timesheet.
  • If both the employer and employee pay workers' compensation, set up two different codes and apply each to the employee's timesheet.
  • If you select the "Show Code on Check Stub" check box, the following applies when the check is printed (Activities>Payroll>Print/Email Checks and Vouchers):
    • Employee Workers' Compensation information prints first, followed by employer information.
    • Employer paid Workers' Compensation amounts are included in the Workers' Compensation totals.
    • Employer paid Workers' Compensation amounts are not included in the net pay.
    • Employee paid Workers' Compensation amounts are printed in the detail and totals area of the check stub.