Defining workers compensation classes
Use this procedure to define workers compensation classes.
- Select Payroll Administrator > Setup > Workers Compensation.
- Click the Classifications tab.
- In the Workers Compensation Classifications section, click Create.
- Specify this information:
- Country
- Select the country.
- State
- If you selected the United States for the country, select a state.
- Legal Entity
- Select a legal entity.
- Legal Establishment
- Select a legal establishment.
- Version Date
- Specify the version date.
- Workers Compensation Policy
- Select a workers compensation policy.
- Premium Per Wages
- If the premiums are based on a rate per amount of wages, specify the amount of wages. If you complete this field, do not complete the Premium Per Hours field.
- Premium Per Hours
- If the premiums are based on a rate per hours, specify the number of hours. If you complete this field, do not complete the Premium Per Wages field.
- Wage Limit
- Specify a wage limit. If the workers compensation state uses annual limits, specify the annual limit of wages used to calculate premiums in this field. If the workers compensation state uses monthly limits, specify the monthly limit of wages used to calculate premiums in this field.
- Limit Indicator
- Specify whether the wage limit is annual or monthly.
- Overtime Premium
- Select this check box to include overtime premium in the workers compensation calculation.
- Section 125 Deduction Class
- Select this check box to have the total associated amount reduce the eligible wages for the workers compensation calculation.
- Click Save.