Defining the workers compensation category and deduction class

Use this procedure to set up the deduction class to identify deductions to reduce eligible wages for the deduction calculation.

  1. As payroll administrators, select Payroll > Administration > Payroll Configuration.

    Or as HR administrators, select HR Administration > Administration > Setup > Structure > Organizations.

  2. Open an organization.
  3. Click the Country Configurable Fields tab.
  4. Select a country, for example, US or CA.
  5. Click Open.
  6. Click the Payroll tab.
  7. In the Workers Compensation Category field, select the workers compensation category that you defined in Defining job country attributes and codes.
  8. For US payroll, in the Workers Compensation Section 125 Deduction Class field, specify a deduction class. This class must include Section 125 Deduction Codes that reduce wages.
    Note: If the Prorate Match Deduction When Deferred Compensation Limit Met check box is selected, then the amount of the deductions reduces gross wages before the workers compensation amount is calculated.
  9. Click Save.