Setting Up Workers' Compensation Insurance Rates

Access the Workers Compensation Insurance Revisions form.

Tax Authority

Enter the code that identifies a geographical location and the tax authorities for an employee work site, including employee and employer statutory requirements. In the Vertex payroll tax calculation software, the tax area code is synonymous with GeoCode. To determine the valid codes for the location, refer to the documentation for the tax calculation software that you are using.

Trans. Class Code (transaction class code)

Enter the code that identifies whether the workers compensation premiums were employee or company paid. Values are:

E: Employee Paid.

C: Company Paid.

WCI Code (workers' compensation insurance code)

Enter the UDC (00/W) that represents a workers' compensation insurance (WCI) code. This code should correspond to the classifications on the periodic workers' compensation insurance reports.

% H (percentage of hours)

Enter the code that indicates whether workers' compensation insurance is based on a percentage of employees' pay or on the number of hours that the employees work. Values are:

%:Percent of gross.

1:Annual Limit/Percent of Gross.

2:Annual Limit/Hours.

3:Monthly Limit/Percent of Gross.

4:Monthly Limit/Hours.

5:Canadian Modified Pro-rating (45 Weeks).

6:Annual Limit/Percent of Gross (Includes all codes for an employee.)

7:Quarterly Limit/Hours

8:Weekly Limit/Percent of Gross

H: Percent of Hours Worked

Note: Methods 2,4, and 7 are for states that calculate WC/GL using hours instead of gross pay. For Washington state, the system will apply limits only for salaried employees. The system will use actual hours worked for hourly and piece work employees.

Workers Comp Expr. Rt (workers compensation experience rate)

Enter the multiplier assigned by the insurance carrier which is used to modify the standard premium rate for workers compensation insurance from the table. This rate is based upon the insurance company's experience with the particular job type and the hazards associated with it. For example, if the insurance company trends indicate that construction workers in New Jersey have more work-related accidents than workers in New York, the company will rate the work done in New Jersey more hazardous.

Workers Comp Rate (workers compensation rate)

Enter the rate as provided by the Workers Compensation Insurance company. It is multiplied by the Experience Rating prior to the calculation of premium. The Rate is represented as a decimal fraction.

Worker Comp Earn Limit (workers compensation earning limit)

Enter the limit for Workers Compensation. Depending on the benefit method chosen, this limit could be annual or monthly. Workers Compensation is not calculated on amounts that exceed this limit. If a limit does not exist, leave this field blank and the system uses the default value 9,999,999.00.

Gen Liability Rate (general liability limit)

Enter the rate used to calculate the insurance premiums for General Liability. The Rate is represented as a decimal fraction.

Gen Liability Earn Limit (general liability earning limit)

Enter the limit for General Liability. Depending on the benefit method chosen, this limit could be annual or monthly. General Liability is not calculated on amounts that exceed this limit. If a limit does not exist, leave this field blank and the system uses the default value 9,999,999.00.

Pay Tbl. (pay table)

Enter the code that identifies a table of pay, deduction, and benefit types that define the basis for various payroll calculations. These tables are used in several processes, such as defining insured pay types for workers compensation and identifying pay types to be included in automatic timecard generation.

Step progression processing uses valid pay types from the Workers Compensation Table. You can add a code to the UDC list (07/IP), and then use that code to define a range of pay types in the Workers Compensation Table (for example, STP for Step Progression). The Step Progression table uses the range of defined pay types to determine when an employee has met the step progression requirements and automatically moves to the next step. You must set up a step progression pay table if you are using the Hourly method for step progression processing. If you are using the Pieces method, you might want to set up pay types for individual pieces, and then enter the pieces pay types in the pay table. It is not necessary to set up a pay table if you are using the Days method.

Job (Opt) (job (optional))

Enter the alphanumeric code that identifies a separate entity within a business for which you want to track costs. For example, a business unit might be a warehouse location, job, project, work center, branch, or plant.

You can assign a business unit to a document, entity, or person for purposes of responsibility reporting. For example, the system provides reports of open accounts payable and accounts receivable by business unit to track equipment by responsible department.

Business unit security might prevent you from viewing information about business units for which you have no authority.

WCI SubClass (workers compensation insurance code)

Enter the code that identifies any special circumstances associated with the workers compensation insurance (WCI) code, resulting in multiple rates for the same WCI code due to location or risk, for example. The subclass should remain blank if multiple rates do not exist. Values are:

Blank: There are no special circumstances.

F: There are special circumstances.