Workers Compensation Calculation

Pre-payroll cycle conditions

These conditions must be met before you start the payroll cycle:

• The employees must have a workers compensation deduction assigned to them.

  See Setting up employee deductions.

• A time record must exist with a job code that has the job country attribute tied to the Workers Compensation Classification setup.

Payroll cycle actions

Complete these actions during the payroll cycle to ensure accurate Workers Compensation calculation:

• Calculate Overtime: If overtime premiums are included in the premium calculation, run this action before you lock payroll.
• Lock Payroll
• Calculate Payments: Verify that the Workers Compensation Deduction was calculated correctly after the Calculate Payments action is completed.

Upon close of payroll, the workers compensation deductions can be posted to the general ledger to accrue an employer’s liability for future payment to the policy insurance company.