The Worker’s Compensation Authority (WC) collects money based on the payrolls of the employers in each state/province, the money collected goes into an ‘Accident Fund’, WC then pays compensation costs out from this fund.
These employers pay WC assessments every year based on their employee’s earnings and on the type of industry they are in.
The employers are required to remit the WC assessments contribution to the Worker’s Compensation authority on a timely basis and therefore employers must calculate their WC contribution while the employees are being paid.
Wiki provides for the definition and calculation of employer premiums. It is then the responsibility of the user to gather the totals and remit on the appropriate interval to the associated authority. Other Wiki historical reports can be used to obtain these summarized numbers.
WORKERS’ COMPENSATION SET UP#
The following explains what set up is required to implement Workers Compensation in Wiki.Lexicons -IMLN#
The lexicon X_WCB_CLASS, maintained on the Lexicon (IMLN) form, is used to store the names of the particular classes needed.WC rates can vary by class of worker and the names of these classes are maintained here.
Pay Point - IPPP#
The task ‘Workers Compensation’ must be assigned to any Pay Point Sets that require this calculation.Workers’ Compensation Information - IPWC#
WC Rates and Maximums are stored here by state/province, entity, and class of worker.The WC Calculation method is determined by state/province in the Maintain WC Information (IPWC) form with the ability to turn it on or off.
The method should be set to ‘Calculate’ in IPWC and it can be overridden to ‘Do Not Calculate’ at the Employee level (IPRLU/IPRLC) or at the Pay Category Level (IPPGC/IPPGU).
WC calculations are performed based on the individual pay lines on pays assessed. Position, job, or employee’s assignment can assign the class. Wiki looks first at the payline, then the employee’s assignment, the position, and finally at the job to determine the WC class.
Group - IDGR#
Setup is required in the IDGR screen where the user can indicate which WC Registration Type from the IPWC screen is to be used for this group.Job/Position/Assignment - IDJB / IDPS /IEAS#
The employee’s WC Class is significant in determining the rates used in the calculation of the premium. Job, position, or employee can assign the class.The WC class can be entered on any assignment record (not just the prime).
Pay Components - IPPC#
Three pay components must be set up to define the ‘WC Earnings’, ‘WC Premium’ and ‘WC Excess Earnings’.PC Usage 7003 must be assigned to the earnings pay component, Usage 7004 must be assigned to the premium pay component, Usage 7005 must be assigned to the excess earnings pay component.
| PC Usage | Usage Description |
|---|---|
| 7003 | WC Earnings |
| 7004 | WC Premium |
| 7005 | WC Excess Earnings |
WORKERS’ COMPENSATION CALCULATION#
The Calculation of WC is done in the UPCALC process. When UPCALC runs it will gather the information on each timesheet, load WC Rates from IPWC according to the Pay Header Group code along with the Work State or Province to retrieve the WC registration from IPWC screen that matches the WC Regist Type on the IDGR screen and calculate WC according to the IPWC Multiple Registrations.- Retrieve the current WCB assessable earnings for each transaction in the pay and accumulate by WC class.
- Most likely there will be only one class per pay, however, eP does handle multiple classes.
- If more than one is found and the ‘maximum’ happens to be different in the two classes, then the highest maximum is used.
- Retrieve the YTD WCB assessable earnings using the element from the IPWC screen.
- If the YTD WCB assessable earnings exceed the WCB annual maximum assessable earnings then no calculation is done.
- Calculate Total WCB Assessable Earnings.
- Current WCB assessable earnings + YTD WCB assessable earnings and calculate the premium (by class).
- Calculate Current Pay WCB Contribution.
- Current WCB assessable earnings * WCB rate on IPWC screen for each class.
- Store Current Pay’s WCB contribution in pay component with usage = 7004.
- Store Current Pay’s WCB earnings in pay component with usage = 7003.
- Store Current Pay’s WC Excess earnings in pay component with usage = 7005.
PRODUCE WCB CLASS TOTAL EARNINGS REPORT - RPWC#
After the WC contributions are calculated in the pay cycle, you should gather the totals and remit them to the WC authority. You can run the RPWC report to produce Total Earnings by WCB class.
