How do I process workers' compensation?

What must I set up?

To process workers' compensation, you must:

• Set up workers' compensation policy (U.S. only). Workers' compensation policy

• Set up workers' compensation classes. Workers' compensation classes

  Note: Payroll determines assessable wages from employees with WC classes assigned to their job codes.

• Assign workers' compensation classes to job codes in the HR application. For more information, see the Infor Human Resources User Guide.

Which setup is optional?

You can also set up workers' compensation deductions, but they are not required. You only need to set up WC deductions if you want to post workers' compensation liability to General Ledger. Posting to General Ledger insures that your organization has enough funds set aside to pay for WC premiums when they are due.

To post to General Ledger you must:

• Define WC deductions. Defining deduction codes

• Assign WC deductions to employees. Employee: deductions

Why must I run a payroll cycle?

You must run a payroll cycle to calculate the wages and, optionally, the deductions used for workers' compensation.

When you run Earnings and Deduction Calculation (PR140) during your payroll cycle each pay period, Payroll does these:

• Determines the earnings used to calculate WC premiums by determining all the assessable wages for employees with job codes that have WC classes assigned to them

• Calculates the premium deduction for the employee's wages, if you choose to post to General Ledger

When you close a payroll cycle, Payroll posts the premiums to General Ledger.

What are WC reports used for?

You create workers' compensation reports to give to your insurance company (if your company is in the United States) or the Workers' Compensation Board (if your company is in Canada). The earnings on the report are used to calculate the premiums you owe.

You can also review reports to make sure they balance with the postings to the General Ledger.