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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 Specified	If 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
0101	WC Regist 1	On IPWC screen, enter the first WC Registration Number using ‘WC Regist 1’ on IDGR Registration tab, a group can use IPWC ‘WC Regist 1’ set up
0102	WC Regist 2	same as 0101, use for second WC Registration Number
0103	WC Regist 3	same as 0101, use for third WC Registration Number
0104	WC Regist 4	same as 0101, use for 4th WC Registration Number
0105	WC Regist 5	same as 0101, use for 5th WC Registration Number
0106	WC Regist 6	same as 0101, use for 6th WC Registration Number
0107	WC Regist 7	same as 0101, use for 7th WC Registration Number
0108	WC Regist 8	same as 0101, use for 8th WC Registration Number
0109	WC Regist 9	same as 0101, use for 9th WC Registration Number
0190	Multiple WC Regist #	this ‘0190’ lexicon value should only be used by IDGR ‘WC Regist Type’ IPWC must not use this ‘0190 – Multiple WC Regist #’ please read IDGR Group set up below for more detail

IMLN – X_CPRV_WCB_METHOD

X_CPRV_WCB_METHOD is used for Canadian Workmen’s Compensation calculation and are used by the following screens: IPRLC, IPPGC

01	Work State/Prov IPWC Class	The IPPH Work State / Province will be used to retrieve the IPWC Class
11	Res State/Prov IPWC Class	The IPPH Residence State / Province will be used to retrieve the IPWC Class
99	Do Not Calculate

IMLN – X_UST_WCB_METHOD

X_UST_WCB_METHOD is used for US Workmen’s Compensation calculation and are used by the following screens: IPRLU, IPPGU and IPWC

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

WC Set UP#

IPPC – WC Pay Components#

The following PC Usages are provided by the system for WC Calculation:

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

WC premiums are generally based on the State / Province where the employee is physically at work. Users must set up Pay Components on 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. Users may set up Pay Components on IPPC screen for WC Usage: 7009, 7010, 7011.

Users do not need to set up Element on IPPC screen because WC Element are defined on IPWC.

IPPP – Define Pay Points for WC#

IPPP must specify the Pay Point Task with ‘Workers Compensation’ for any Pay Point Sets that require WC calculation.

IPWC – Maintain WC Rates#

For each State / Province, user must set up each WC Class with the associated Maximum 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 Worker’s Compensation Board, this is to be used on IDGR Registration Tab
The Pay Header’s Group is used to retrieve the IDGR WC Regist Type and therefore to retrieve IPWC WC Regist Type entry

Element

specifies the Element to be used for WC calculation of this State/Province

WC Method

specifies the default WC method for this State/Province
IPWC WC Method will be superimposed by employee’s Payrule WC Method from IPRLC / IPRLU screen or overridden by the Pay Category of each pay from IPPGC / IPPGU screen
If IPWC WC Method = ’99 – Do not calculate’, this overrides employee’s Payrule 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 the IDGR ‘WC Regist Type’ in order to locate the IPWC entry to be used for WC Calculation.

• IDGR WC Regist Type can be set up according to IMLN X_WC_REGIST_TYPE
• if IDGR WC Regist Type = ‘Multiple WC Regist #’, this means that all IPWC Regist 1 to Regist 9 entries are to be used by this Group with the same State/Province in order to look for a match for the WC Class of each Pay Line
• this allows each Group to use Multiple WC Registration Numbers or just one WC Registration Number
• if ‘Multiple WC Regist #’ is used by any group, then each WC Class must be unique on IPWC for ‘WC Regist 1’ to ‘WC Regist 9’ set up
• if the same WC Class is defined more than once with ‘WC Regist 1’ to ‘WC Regist 9’, then the first entry of this WC Class under any ‘WC Regist n’ will be used.
  
  

Here is an example of a Group set up: Group: ‘FULL TIME’ can report to ‘WC Regist 1’ and ‘WC Regist 2’, users have 2 options to set up:

1. Set up two Groups, ‘FULL TIME 1’ and ‘FULL TIME 2’
   • on IDGR for each group, use ‘WC Regist 1’ and ‘WC Regist 2’
2. Set up one Group, ‘FULL TIME’
   • on IDGR for this group, use ‘Multiple WC Regist #’
   • on IPWC, enter ‘WC Regist 1’ and ‘WC Regist 2’ entries, then ensure the IPWC Class are unique under each ‘WC Regist n’ set up

IPRLC / IPRLU – Payrule WC Method#

Most employees do not require to set up IPRLC / IPRLU 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 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 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 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 IEAS WC Class, then the Position IDPS WC Class, then the Job IDJB WC Class. User can also override the WC Class at the Pay Line Level.

IDJB – Job WC Class#

Each Job may specify a WC Class.

IDPS – Position WC Class#

Each Position may optionally specify a WC Class.

IEAS – Assignment WC Class#

Each employee’s Assignment may optionally specify a WC Class.

IPPH – Pay Line WC Class#

The WC Class can be overridden at Pay Line Transaction level. WC calculations are performed based on the individual Pay Lines on Pays assessed. If WC Class is overridden at the Pay Line level, then this WC Class is used, otherwise, the Assignment of this Pay Line is used to retrieve the WC Class from the Assignment. If WC Class does not exist on the Assignment, then the Position of the Assignment is used to retrieve the Position WC Class. If the Position WC Class is not defined, then the Job of the Assignment is used to retrieve the Job WC Class.

WC Calculation#

UPCALC WC Processing#

The following WC Methods are supported for WC Calculation:

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

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

If any of the Pay Category, Payrule or IPWC WC Method = 99, WC will not be calculated. Thus user can suppress WC calculation 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 IPWC Element, then this Pay Line’s Earnings is 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 Assignment to retrieve IEAS WC Class. If WC Class does not exist, then uses the Pay Line Position to retrieve IDPS WC Class. If WC Class does not exist, then uses the Pay Line Job to retrieve IDJB Job WC Class.

For internal amounts that are not from 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:

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

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

• Store Current pay’s WC contribution in pay component with usage = 7003
• Store Current pay’s WC contribution in Pay Line Detail by WC Class for WC Report

• Store Current pay’s WC earnings in pay component with usage = 7004
• Store Current pay’s WC earnings in Pay Line Detail by WC Class for WC Report.

• Store Current pay’s WC Excess earnings in pay component with usage = 7005
• Store Current pay’s WC Excess earnings in Pay Line Detail by WC Class for WC Report.

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

• Store Current pay’s WC contribution in pay component with usage = 7009
• Store Current pay’s WC contribution in Pay Line Detail by WC Class for WC Report

• Store Current pay’s WC earnings in pay component with usage = 7010
• Store Current pay’s WC earnings in Pay Line Detail by WC Class for WC Report.

• Store Current pay’s WC Excess earnings in pay component with usage = 7011
• Store Current pay’s WC Excess earnings in Pay Line Detail by WC Class for WC Report.

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.

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Notes #

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