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Set up workers' compensation

You can find a list of available workers' compensation classification codes (or classes) and descriptions for each state in the

Workers' Compensation Codes

screen. In the Workers' Compensation
tab of the Setup
then Clients
screen, you can select codes that your client has been assigned along with an associated rate for each code. The codes and rates are available for any state the client does business in, meaning all states that are available to them in the Payroll Taxes
tab of the Clients
screen.

To set up workers' compensation, you'll need to set up compensation codes for the client then set up the compensation for each employee:

Set up workers' compensation codes for the client:

Select Setup
, Clients
, select the client from the the Client list, then select Edit
.

Go to the Workers' Compensation
tab, go to the Workers' Compensation grid, and select the state and code from the dropdowns. The states available in the list reflect the states available to the client in the Payroll Taxes
tab.

note

You can mark the Inactive
checkbox for any codes that are no longer in use.

You can add a new Workers' Compensation code on the fly by entering the code in the Code
field. The application displays a prompt that asks if you'd like to add the code. Select Yes
to open the

Workers' Compensation Codes

screen where you can enter the new code and a description.

Enter or select the general ledger liability and expense accounts to be used when journal entries related to the accrual of workers' compensation amounts are created. The account numbers entered here will be used by default for all the client's employees, but you can modify them at the employee level if necessary.

Select

next to the Rate column to enter the rate, effective date, and experience modification percentage in the

Workers' Compensation Rate

window.

note

Additional fields (Employer rate and Employee rate) are available for Washington clients for Washington L & I.

Select the agent to be used for the creation of liabilities for the code. The dropdown contains all Payroll Agent type vendors set up for the client. (For Washington only, this will be the tax agent.)

Add rows until all of the workers' compensation codes are added for the client then select Enter
to save the codes.

Set up workers' compensation for an employee:

Select Setup
, then Employees
.

Select the client at the top of the screen, select the employee in the Employees list, then select Edit
.

Go to the Workers' Compensation
tab. The grid is populated with the Workers' Compensation codes that are set up for the client in the Workers' Compensation
tab of the Clients
screen. Mark the Active
checkbox next to a code to activate it for the employee.

note

To activate specific location or department combinations for the employee, select ellipsis

to open the

Workers' Compensation Detail

window. When some combinations are marked as active in this window and others aren't, the Active
checkbox in the Worker's Compensation grid displays as mixed

Select the accounts from the GL Liability
and GL Expense
dropdowns to specify the general ledger liability and expense accounts to be used for the premium amount for all location or department combinations.

note

To specify general ledger liability and expense accounts for specific department or location combinations, select ellipsis

to open the

Workers' Compensation Detail

window. When the general ledger liability and expense accounts for a location or department combination in this window differ from the accounts specified for the other combinations, the GL Liability
and GL Expense
fields in the Worker's Compensation grid will show "(See details)".

If you want the employee to be excluded from workers' compensation, mark the Exempt
checkbox.

note

When a state and code are selected and this checkbox is marked, the wages will be calculated on the check as excluded, making the premium zero.

Thomson Reuters has developed a preferred-partner relationship with both The Hartford Financial Services Group, Inc. (XactPAY) and InsurePay to accommodate your need for pay-as-you-go workers' compensation insurance for your live payroll processing clients.

Accounting CS automatically excludes officer wages from workers' compensation calculations within the XactPAY and InsurePay files.

Clients using XactPAY
: Don't mark the Exempt
checkbox for employees who are specified as an Officer (in the Personal
tab of the Setup
then Employees
screen).

Clients using InsurePay
: To include officers in premium calculations, you'll need to clear the Exempt
checkbox for the appropriate code for employees who are specified as an Officer (in the Personal
tab of the Setup
then Employees
screen).

Select Enter
to save the employee information.

This article applies to:

Product: Accounting CS
Subject: Payroll checks,Setup

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Set up workers' compensation

This article applies to: