UPCALC WORKERS COMPENSATION PROCESSING

Table of Contents

UPCALC WORKERS COMPENSATION PROCESSING#

Overview#

The Workers' Compensation Board (WCB) collects money based on the payrolls of the employers in each state/province. The money collected goes into an Accident fund and the Board then pays compensation costs out from this fund.

Employers pay WCB assessments every year based on their employees' earnings and on the type of industry they are in. The employers are required to remit the WCB assessments contribution to the Workers' Compensation Board on a timely basis, therefore employers must calculate their WCB contribution while the employees are being paid.

The system provides for the definition and calculation of employer premiums. It is then the responsibility of the employer to gather the totals and remit on the appropriate interval to the associated board. Other historical reports can be used to obtain these summarized numbers.

SET UP#

IMLN - Lexicons#

The following lexicons are provided by the system and used for WC calculation,
IMLN - X_WCB_CLASS
X_WCB_CLASS stores the names of the particular WC classes needed by the system. WC rates can vary by WC class of workers and the names of these classes are provided by the Workers' Compensation Board.

Users needs to maintain their own WC Class on this screen.
IMLN - X_WC_REGIST_TYPE
X_WC_REGIST_TYPE is used by the IPWC and IDGR screens to allow for the set up of one or multiple WC Registration Numbers that are assigned by the Workers' Compensation Board.
0100 Not SpecifiedIf within the IDGR screen, under the Registration tab, the WC Regist Type field is set to "0100", WC will not be calculated for this group
0101WC Regist 1On the IPWC screen, enter the first WC Registration Number as "WC Regist 1".
On the IDGR screen, under the Registration tab, a group can use the IPWC "WC Regist 1" set up.
0102WC Regist 2This registration type is the same as 0101 and is to be used for the second WC Registration Number.
0103WC Regist 3This registration type is the same as 0101 and is to be used for the third WC Registration Number.
0104WC Regist 4This registration type is the same as 0101 and is to be used for the, use for fourth WC Registration Number.
0105WC Regist 5This registration type is the same as 0101 and is to be used for the fifth WC Registration Number.
0106WC Regist 6This registration type is the same as 0101 and is to be used for the sixth WC Registration Number.
0107WC Regist 7This registration type is the same as 0101 and is to be used for the seventh WC Registration Number.
0108WC Regist 8This registration type is the same as 0101 and is to be used for the eighth WC Registration Number.
0109WC Regist 9This registration type is the same as 0101 and is to be used for the ninth WC Registration Number
0190Multiple WC Regist #This '0190' lexicon value should only be used by the IDGR 'WC Regist Type' field.
IPWC must not use this lexicon value.
Please read IDGR Group set up below for more detail.
IMLN - X_CPRV_WCB_METHOD
X_CPRV_WCB_METHOD is used for Canadian Workers' Compensation calculation and are used by the following screens: IPRLC, IPPGC
01Work State/Prov IPWC ClassThe IPPH Work State/Province will be used to retrieve the IPWC Class
11Res State/Prov IPWC ClassThe IPPH Residence State/Province will be used to retrieve the IPWC Class
99Do Not Calculate
IMLN - X_UST_WCB_METHOD
X_UST_WCB_METHOD is used for US Workers' Compensation calculation and by the following screens: IPRLU, IPPGU and IPWC.
01Work State/Prov IPWC ClassThe IPPH Work State field will be used to retrieve the IPWC class.
02US Symmetry TaxationWC will be calculated in UPCALC by US Symmetry Taxation only; IPWC is not used.
03Work State IPWC & US TaxationBoth Method 01 and 02 will be used for WC calculation.
11Res State/Prov IPWC ClassThe IPPH Residence State will be used to retrieve the IPWC class.
13Res State IPWC & US TaxationBoth Method 11 and 02 will be used for WC calculation.
99Do Not Calculate

WC Set UP#

IPPC - WC Pay Components#

The following PC Usages are provided by the system for WC Calculation:
7003Work WC Earnings
7004Work WC Premium
7005Work WC Excess Earnings
7009Res WC Earnings
7010Res WC Premium
7011Res WC Excess Earnings

WC premiums are generally based on the state/province where the employee is physically at work. Pay Components must be set up on the IPPC screen for Usage: 7003, 7004, 7005 for WC Calculation.

For employees who reside in one state/province and physically at work in different state/province, the State/Province may require to calculate WC according to the Residence State/Province. Pay Components may be set up on the IPPC screen for WC Usage: 7009, 7010, 7011.

The Element on the IPPC screen does not need to be set up because the WC Element is defined on IPWC.

IPPP - Define Pay Points for WC#

IPPP must have the Pay Point Task field set to "Workers' Compensation" for any Pay Point Sets that require WC calculation.

IPWC - Maintain WC Rates#

For each State/Province, each WC Class must be set up with the associated Maximum Amount and Rates.

IPWC Element and WC Method must be set up.

WC Regist Type
Specifies 'WC Regist 1' up to 'WC Regist 9'
You may have multiple WC Registration numbers from Workers' Compensation Board, which are to be used on the IDGR Registration tab.
The Pay Header's Group is used to retrieve the IDGR WC Regist Type and therefore to retrieve the IPWC WC Regist Type entry.
Element
Specifies the element to be used for the WC calculation of this State/Province.
WC Method
Specifies the default WC method for this State/Province.
The IPWC WC Method will be superimposed by the employee's Payrule WC Method from the IPRLC/IPRLU screen or overridden by the Pay Category of each pay from the IPPGC/IPPGU screen.
If on the IPWC screen, the WC Method field is set to '99 - Do not calculate', the employee's Pay Rule will be overridden and the Pay Category WC Method, WC will not be calculated.

IDGR - Define Groups WC Regist Type#

The Pay Header's Group is used to retrieve 'WC Regist Type' from IDGR in order to locate the IPWC entry to be used for WC Calculation.

Here is an example of a Group set up: Group: 'FULL TIME' can report to 'WC Regist 1' and 'WC Regist 2', there are two set up options:
  1. Set up two groups, 'FULL TIME 1' and 'FULL TIME 2'
    • On IDGR, use 'WC Regist 1' and 'WC Regist 2' for each group.
  2. Set up one group, 'FULL TIME'
    • On IDGR, use 'Multiple WC Regist #' for this group.
    • On IPWC, enter 'WC Regist 1' and 'WC Regist 2', then ensure that IPWC Class is unique under each 'WC Regist n' set up.

IPRLC / IPRLU - Payrule WC Method#

Most employees do not require a IPRLC/IPRLU set up, except to enter an overridden WC method or to suppress the WC calculation to "99 - Do not calculate". If IPRLC/IPRLU WC Method is not set up, the IPWC WC Method will be used according to the Pay Header's State/Province.

In Canada, an employee may specify an overridden 'Prov WC Method'.

In US, an employee may specify an overridden 'WC Method'.

IPPGC / IPPGU - Pay Category WC Override#

In Canada, each pay category may specify an overridden 'Prov WC Method'. IPPGC WC Method overrides the IPRLC WC Method, which also overrides the IPWC WC Method of each province.

In the US, each pay category may specify an overridden 'STATE WC Method'. IPPGU WC Method overrides the IPRLU WC Method, which also overrides the IPWC WC Method of each State.

Assigning WC Class#

On the IPWC screen, the 'WC Class' of an employee is significant in determining the WC rates to be used in the calculation of the WC premium. WC Class can be assigned by position, job or employee. UPCALC looks first at the employee's assignment WC Class from IEAS, then the position WC Class from IDPS, then the job WC Class from IDJB.

The WC Class can also be overridden at the Pay Line level. WC calculations are performed based on the individual pay lines on assessed pays. If WC Class is overridden at the Pay Line level, then this WC Class is used, otherwise, the pay line's assignment is used to retrieve the Assignment WC Class. If WC Class does not exist on the assignment, then the position associated with the assignment is used to retrieve the Position WC Class. If the Position WC Class is not defined, then the job associated with the assignment is used to retrieve the Job WC Class.

WC Calculation#

UPCALC WC Processing#

The following WC Methods are supported for WC Calculation:

01Work State/Prov IPWC Class (used for Canada and US)The IPPH Work State will be used to retrieve the IPWC Class.
02US Symmetry Taxation (US only)WC will be calculated in UPCALC by US Symmetry Taxation only, IPWC is not used.
03Work State IPWC & US Taxation (US only)Both Method 01 and 02 will be used for WC calculation.
11Res State/Prov IPWC Class (used for Canada and US)The IPPH Residence State will be used to retrieve the IPWC Class
13Res State IPWC & US Taxation (US only)Both Method 11 and 02 will be used for WC calculation
99Do Not Calculate

WC Method is first taken from the pay category of each pay. If Pay Category WC Method does not exist, then the Pay Rule WC Method is used. If Pay Rule WC Method does not exist, then the IPWC WC Method of the Work Province is used.

If any of the Pay Category, Pay Rule or IPWC WC Methods = 99, WC will not be calculated. Which means the WC calculation can be suppressed at any level.

According to the WC Method, UPCALC determines if the pay header's Work or Residence State/Province to be used to load the IPWC WC Class for WC calculation.

In UPCALC, each pay line's pay component is checked against the IPWC Element. If the pay component is included in the IPWC Element, then this pay line's Earnings are considered as WC assessable earnings and will be accumulated by WC Class.

The WC Class is retrieved for each pay line and accumulated. The WC Class is first taken from the pay line if it exists. If WC Class does not exist, UPCALC uses the pay line's Assignment to retrieve IEAS WC Class. If WC Class does not exist, then the pay line's Position is used to retrieve IDPS WC Class. If WC Class does not exist, then the pay line's Job is used to retrieve IDJB Job WC Class.

For internal amounts that are not from the pay line (i.e. Usercalc, benefit amounts, etc.), the employee's prime assignment is used to retrieve the WC Class. Most likely, there will be only one class per pay, but UPCALC handles more than one WC Class per pay. If more than one class is found and the 'WC Maximum' happens to be different in the WC Classes, then the highest WC Maximum is used.

UPCALC then retrieves the YTD WC assessable earnings by IPWC Element for the Work or Residence State/Province according to the WC Method.

If YTD WC assessable earnings exceeds the highest WC annual maximum assessable earnings, then WC premium will not be calculated for that class. The excess earnings will be stored by class for WC reporting purposes

UPCALC WC Calculation#

Calculate Total WC assessable earnings
Current WC assessable earnings + YTD WC assessable earnings and capped at the Highest WC Maximum Earnings from eligible WC classes of all pay lines
Calculate Current pay WC Premium contribution (by WC Class)
Current WC assessable earnings * WC rate on IPWC screen for each class and accumulate

The following PC Usages are used for WC Calculation:

7003Work WC Earnings
7004Work WC Premium
7005Work WC Excess Earnings
7009Res WC Earnings
7010Res WC Premium
7011Res WC Excess Earnings

If WC Method is by Work State/Province, store the WC Results into Work WC Pay Components:

If WC Method is by Residence, store the WC Results into Residence WC Pay Components:

Trial Calc - WC Sample#

When employee lives in Ontario and works in BC, if the Res WC is to be calculated, then the Res WC pay components are used.

Notes #

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Screen captures are meant to be indicative of the concept being presented and may not reflect the current screen design.
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