Your workers' compensation insurance policy is based on a job type for each of your employees, which is based on a risk of injury. Each state publishes a list of codes that define employee job types. When you calculate worker's compensation, the employee's gross pay is multiplied by the rate assigned in Add/Edit Worker's Compensation Records.
Workers' compensation amounts accrue for tracking purposes, but are not posted to the general ledger.
To add worker's compensation categories
- Under Advanced Tools, click the Define Lists tab.
- In the drop-down list, select Payroll and click Go .
- Under Available Lists, select Worker's Compensation, then click Add.
- Enter information in the appropriate fields.
- Optional: To add another list item, select Add Another.
- Click OK.
Worker's Comp Code
When adding a new worker's compensation code, enter the code assigned by your state. If you do not have a list of codes for your state, you can assign a unique six-character alphanumeric code of your own- however, the codes must be unique. When editing an existing code, enter the workers' comp code.
Enter the job type description for the workers' compensation code.
Select the check box to mark the record's status as Active or Inactive.
Enter your state's full name, or select it in the drop-down list.
Enter the regular rate in decimal format listed in your insurance policy. For example, if your policy lists the rate as 1.2%, enter 1.2.
Enter the overtime rate in decimal format listed in your insurance policy.
To add another workers' compensation code, select this option.