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Set up employees and payroll items

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:
  1. Set up workers' compensation codes for the client:
  2. Select
    Setup
    ,
    Clients
    , select the client from the the Client list, then select
    Edit
    .
  3. 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.
  4. 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.
  5. Select ellipsis 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.
  6. 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.)
  7. Add rows until all of the workers' compensation codes are added for the client then select
    Enter
     to save the codes.
  8. Set up workers' compensation for an employee:
  9. Select
    Setup
    , then
    Employees
    .
  10. Select the client at the top of the screen, select the employee in the Employees list, then select
    Edit
    .
  11. 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
  12. 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)".
  13. 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).
  14. Select
    Enter
     to save the employee information.

This article applies to:

  • Product: Accounting CS
  • Subject: Payroll checks,Setup

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