Setting Up Workers' Compensation

If you are setting up PeopleSoft Pay/Bill Management without PeopleSoft Staffing Front Office, or PeopleSoft Pay/Bill Management and PeopleSoft Staffing Front Office, you set up workers' compensation information in the PeopleSoft HCM database. If you are setting up PeopleSoft Staffing Front Office without PeopleSoft Pay/Bill Management, you set up workers' compensation information in the PeopleSoft Financials database.

This topic discusses how to set up workers’ compensation.

Page Name

Definition Name

Usage

Workers' Comp Company Setup Page

FO_WC_CO_MOD

Set up workers' compensation companies. For each HCM company, establish an overall workers' compensation modifier, and set up the journal template for the accounting entries (the modifier is used above and beyond workers' compensation rates).

Workers' Comp State Codes Page

FO_WC_STATE

Set up workers' compensation codes.

Associate workers' compensation codes with a state. By populating the workers' compensation control tables, PeopleSoft Pay/Bill Management users do not need an in-depth understanding of workers' compensation regulations when they create an order.

Workers' Comp by Job Code Page

FO_JOBCODE_PRD

Associate company-defined job codes with a single workers' compensation code for each state in which you do business.

Workers' Comp State Rates Page

FO_WC_CO_STATE

Set up the rates that you pay for each workers' compensation code. Rates are entered for a specific company, country, and state.

The system uses this rate during the Workers Compensation Premium Calculation program. It also uses this rate in the margin calculation to determine optimal pay and bill rates for an order and assignment. The system also uses these rates to create accounting journal entries.

See also the product documentation for PeopleSoft HCM: Human Resources Administer Workforce, “Increasing the Workforce”.

Use the Workers' Comp Company Setup (workers' compensation company setup) page (FO_WC_CO_MOD) to set up workers' compensation companies.

For each HCM company, establish an overall workers' compensation modifier, and set up the journal template for the accounting entries (the modifier is used above and beyond workers' compensation rates).

Navigation:

  • HCM database

    Set Up HCM > Product Related > Staffing > Worker's Compensation > Workers' Comp Company Setup

  • Set Up Financials > Product Related > Staffing > Payroll > Workers' Comp Company Setup

Field or Control

Description

Status

Select Active or Inactive.

Company Modifier

Enter the factor to apply to workers' compensation premium calculations above and beyond specific workers' compensation rates.

Journal Template

Select the journal template to use when creating journal entries for workers' compensation premiums.

Note: This field is applicable only when PeopleSoft Pay/Bill Management is installed.

Use the Workers' Comp State Codes (workers' compensation state codes) page (FO_WC_STATE) to set up workers' compensation codes.

Associate workers' compensation codes with a state. By populating the workers' compensation control tables, PeopleSoft Pay/Bill Management users do not need an in-depth understanding of workers' compensation regulations when they create an order.

Navigation:

  • HCM database

    Set Up HCM > Product Related > Staffing > Worker's Compensation > Worker's Comp State Codes

  • Set Up Financials/Supply Chain > Product Related > Staffing > Payroll > Workers' Comp State Codes

Note: Oracle recommends that a workers' compensation specialist set up the information in this table.

Field or Control

Description

Status

Select Active or Inactive.

Workers' Comp Code

Field or Control

Description

Workers' Comp Code

Enter the actual workers' compensation code to associate with the state.

Description

Enter the name of the workers' compensation code.

Short Description

Enter a short description for this workers' compensation code.

Earnings Code Rate

In this group box, enter the earnings codes, and specify an earnings rate for those earning codes that are subject to workers' compensation premiums. This grid is available only in the PeopleSoft HCM database.

Field or Control

Description

Earnings Code

Select the actual earnings code to associate with the state.

Description

Displays the associated earnings code description.

Earnings Rate

Select the earnings rate to associate with the state. Values include: Exclude Earnings Code, Full, One Half, and Two Thirds. These values represent the percent of an hour to which the workers' compensation rate applies.

Note: If you select a rate type of Percentage on the Workers' Comp Rates page, you must enter all earnings codes on the Workers' Comp State Code page to be used in the Workers Compensation Premium Calculation process. If you fail to enter an earnings code on this page, the code will not be part of the workers' compensation process.

Use the Workers' Comp by Job Code (workers' compensation by job code) page (FO_JOBCODE_PRD) to associate company-defined job codes with a single workers' compensation code for each state in which you do business.

Navigation:

  • HCM database

    Set Up HCM > Product Related > Staffing > Workers' Compensation > Workers' Comp By Job Code

  • Set Up Financials/Supply Chain > Product Related > Staffing > Payroll > Workers' Comp by Job Code

Field or Control

Description

Job Code

Displays the unique code that you associate with a specific job in the organization.

Status

Select Active or Inactive.

State Codes

Field or Control

Description

Workers' Comp Code

Select a workers' compensation code for a chosen country and state. This action relates the job code to a specific workers' compensation code for a specific country and state. Enter a row for each country and state combination in which you conduct business.

When a code is selected, the system displays the associated code description.

Use the Workers' Comp State Rates (workers' compensation state rates) page (FO_WC_CO_STATE) to set up the rates that you pay for each workers' compensation code.

Rates are entered for a specific company, country, and state. The system uses this rate during the Workers Compensation Premium Calculation program. It also uses this rate in the margin calculation to determine optimal pay and bill rates for an order and assignment. The system also uses these rates to create accounting journal entries.

Navigation:

  • HCM database

    Set Up HCM > Product Related > Staffing > Worker's Compensation > Workers' Comp Rates

  • Set Up Financials/Supply Chain > Product Related > Staffing > Payroll > Workers' Comp State Rates

This example illustrates the fields and controls on the Workers' Comp State Rates page. You can find definitions for the fields and controls later on this page.

 'Workers' Comp State Rates page

Field or Control

Description

Status

Select Active or Inactive.

Company State Modifier

If you have a company factor to be applied to premiums in this state, enter the value here. This value overrides the company modifier.

Monopolistic State

Select to override the modifier with a value of 1. This results in the modifier having no effect on the workers' compensation calculation.

Expense Account

Select the general ledger account for the system to use in journal entries for workers' compensation premium expenses.

Note: This field applies only when PeopleSoft Pay/Bill Management is installed.

Liability Account

Select the general ledger account for the system to use in journal entries for workers' compensation premium liabilities.

Note: This field applies only when PeopleSoft Pay/Bill Management is installed.

Base Rates

Field or Control

Description

Workers' Comp Code

Select a workers' compensation code for this state. The system displays the associated description for the code.

Rate Type

Select a rate type: Per Hour or Percentage.

Base Rate

Enter a base workers' compensation rate.

For percentage rate types, enter the rate as a number (not percent). For example, for a rate of 3.5 percent, enter 3.5 in the rate field.

For per hour rate types, enter the amount to be applied per hour in decimal format. For example, for a rate of 3.5 percent per hour, enter 0.035 in the rate field.