Reporting Workers' Compensation Using a Tax ID
To report workers' compensation using a tax ID:
Add new tax type codes for workers' compensation in UDC 06/TX.
The codes are two characters long, and the first character must be a W (because the W is hard-coded in other applications). The second character can be any character (for example, W1).
Change UDC 00/W to display the Description 2 field.
Add workers' compensation insurance codes to UDC 00/W for each tax type code that you created in step 1, entering the corresponding tax type code from UDC 06/TX in the Description 2 field.
This table illustrates example values:
Field
Value
Code
NS1
Description 1
Nova Scotia
Description 2
W1
Hard Coded
N
Add a new tax area for each tax type code you created in step 1.
This table illustrates example values:
Field
Value
Tax Area
700130000
Description 1
Nova Scotia
Description 2
Workers' Comp
Tax Type
W1
Statutory Code
NS
Co/Empl Paid
C
Method of Printing
Y
Note: Activating vouchering does not automatically create a voucher for workers' compensation during the payroll process.Add a tax ID number for each combination of tax area and tax type.
This table illustrates example values:
Field
Value
Work Tax Area
700130000
TT
W1
Description
Nova Scotia
CP
N
Tax ID
BINxxxxxxxxxxxx
For each affected employee, specify a workers' compensation insurance code that you created in step 3 in the Workers' Comp field (WCMP) on the National and Fiscal Data - Canada form.
Set up workers' compensation rates for the workers' compensation insurances codes that you created in step 3.
Specify these codes in the WCI Code field (WCMP) on the Workers' Compensation Insurance Revisions form.
Because vouchers are not automatically created for workers' compensation, run the Print Workers' Compensation Register report (R773601) during either the Journals or Reports Only step of the payroll cycle to find the premium amount, and then manually enter a voucher to pay the premium amount.
If any employee has multiple workers' compensation codes within a pay period, you must create a separate check for each workers' compensation code to pay the correct premium.