Considerations for Workers' Compensation Processing

Rate Retrieval

Rates used to calculate Workers' Compensation liability

Rate from the default Workers' Compensation Account set for the Payroll Statutory Unit (PSU).
Rate associated with the Workers' Compensation Classification Unit Override and the Workers' Compensation Province Override, that you entered at the Location, Job, or Department levels.
Rate associated with the default Workers' Compensation Account for the Workers' Compensation Province Override on the assignment.
Rate associated with the default rate of the Workers' Compensation Account Override on the assignment.
Rate associated with the Workers' Compensation Classification Unit Override entered on the assignment.

Note: If no rates are defined at the PSU level, then no Workers' Compensation liability is calculated.

Calculation of Liability

The employee's province of employment determines which Workers' Compensation Board applies to their assignment. By default, the rate from the Workers' Compensation account is used to calculate liability, unless overridden at another level.

If an employee moves to a different province, their assessable wages and Workers' Compensation liability do not carry over to the new province.

Wage Basis Rules

These balances are created and tracked for Workers' Compensation:

Workers' Compensation Gross represents the gross earnings.
Workers' Compensation Subject represents the earnings used to calculate the Workers' Compensation liability amount. This also includes amounts above the maximum set for each province. It is the result of Workers' Compensation Gross - Workers' Compensation Exempt - Workers' Compensation Exempt Employee.
Workers' Compensation Taxable (also known as Assessable) represents the earnings used to calculate the Workers' Compensation liability amount. This is the amount below (or equal to) the maximum set for each province.
Workers' Compensation Exempt Employee represents the earnings that are exempt because defining the employee as exempt from Workers' Compensation in the assignment or the tax card.
Workers' Compensation Exempt represents earnings that doesn't have wage basis rules setup.
Workers' Compensation Excess is the earnings over the maximum assessable amount that isn't used in Workers' Compensation liability calculations.
Workers' Compensation Liability represents the calculated Workers' Compensation amount due by the employer.

Annual Maximum Assessable Wages for a Province

Annual maximum assessable wages are delivered for each province. They are stored in the Calculation Information Repository of each province and Oracle updates them on an annual basis.

Use the Calculate Value Definitions task in the Payroll area to view the annual maximum assessable wages values for each province and update them.

Workers' Compensation Overrides

You can define overrides for Workers' Compensation processing at the person level, specifically on the assignment or term, and at the job, location, or department level.

Assignment Level Overrides

To enter the below overrides for a person at the Assignment section of the Employment Information page, navigate to Hire an Employee task under New Person in the Workforce Management work area:

Workers' Compensation Province: You can override the province of employment. The default account for that province is used unless overrides exist.
Workers' Compensation Account: You can select any valid account defined for the Payroll Statutory Unit (PSU) as the override. This uses the default classification unit and rate for this account unless lower-level overrides exist.
Workers' Compensation Classification Unit: You can use any valid classification unit defined for the Workers' Compensation Account as the override. This override is used to determine the rate for calculating Workers' Compensation liability.

Job Level Overrides

Use the Manage Jobs task in the Setup and Maintenance work area and under Define Workforce Structures to enter these override values in the Canada Job Information section of the Create Job: Job Details page:

Workers' Compensation Classification Unit Override
Workers' Compensation Province

Location Level Overrides

Use the Manage Locations task in the Setup and Maintenance work area and under Define Workforce Structures to enter this override value in the Canada Legislative Information section of the Create Location page:

Workers' Compensation Classification Unit Override

Department Level Overrides

Use the Manage Departments task in the Setup and Maintenance work area and under Define Workforce Structures to enter these override values in the Department Legislative Information section of the Create Department: Department Details page:

Workers' Compensation Classification Unit Override
Workers' Compensation Province

When defining overrides at the job or department-level, you must specify the province first, as this presents classification units specific to that province.