Understanding Industrial Insurance Setup
For the system to accurately calculate premiums and produce reports for industrial insurance, you must set up industrial insurance information in the system. Setting up industrial insurance information includes these tasks:
Entering risk classification codes in UDC table 00/W.
Creating pay basis tables that include only the pay types that should be used in calculating industrial insurance premiums.
Entering risk classification information for employer-paid industrial insurance premiums.
Entering risk classification information for employee-paid industrial insurance premiums.
Setting up the employee-paid industrial insurance deduction.
Assigning risk classification codes to employee timecards.
After the organization receives a notice from the state of Washington that specifies the risk classification codes that are associated with the organization, you must add those codes to UDC table 00/W. This UDC table also holds Workers' Compensation codes.
Then, using the Workers Compensation Insurance Basis Table program (P079071), you must create pay basis tables that include only the pay types that should be included when determining the number of hours that an employee works. Because the industrial insurance premium is based only on hours that the employee actually works, you should not include sick, vacation, holiday, or other leave pay types in the pay basis tables that you use for industrial insurance calculations.
After you have entered risk classification codes and created pay basis tables, you must enter information about each risk classification code by using the Workers Compensation Insurance Revisions program (P079211). At a minimum, you must create an employer-paid record for each risk classification code and company combination within the organization. If the organization decides to deduct the employee-paid portion of the premium, you must also create a record for the employee-paid portion of the premium for each risk classification code and company combination.
If the organization decides to collect the employee-paid portion of the premium from the employees' pay, you must also set up a deduction to calculate this amount.
After you have entered all of the risk classification information into the system, you can assign risk classification codes to employee timecards and process those timecards through the payroll cycle. The history information that is created during the payroll cycle is used to generate the report that you submit to the state of Washington.