Steps
to Add a Workers' Compensation ClassNote: Below are the instructions for setting up workers compensation to be tracked (and paid, if desired) within the School Accounting System.
_____ 1. Define the applicable workers' compensation classes.
Steps
to Add a Workers' Compensation Class
_____ 2. Tie the workers' compensation classes to the appropriate pay codes.
From the Payroll screen, select the Maintenance menu and then Pay Codes.
At the Pay Codes screen, enter the ID for the pay code to tie to a workers' compensation class in the Pay Code ID field. If the ID is not known, click the down-arrow button or the Find button to select the correct one.
Enter the ID for the workers' compensation class with the corresponding rate for which to calculate (and pay, if applicable) the workers' compensation liability on the gross wages for the pay code in the Workers' Compensation Class ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature.
Click the Save button.
Repeat these steps for all pay codes that should be tied to a workers' compensation class.
Note: If needed, a pay code for an employee can be defined to use a different workers' compensation class than the one assigned in the Pay Code File by completing the Workers' Compensation Class ID Override field on the Wages screen in the Employee File.
_____ 3. Set up the tax for workers compensation for tracking and reporting purposes, or for calculating and paying during the Payroll check cycle.
Setting Up the Workers Compensation Tax to be Tracked Only:
From the Payroll screen, select the Maintenance menu and then Taxes.
Enter the ID for the workers compensation tax in the Tax ID field. If the ID is not known, click the down-arrow button or the Find button to select the correct one.
Click the Tax Table tab.
Enter the current year in the Tax Year field. Use the use the yyyy format, or click the down-arrow button to select the correct year.
Leave the Tax Rate field blank to use the applicable workers' compensation classes defined in Step 1 (above).
Enter the maximum dollar amount that the tax can be calculated up to in the Limit field.
Do not select the Calculate Employer Share field.
Enter the basis (Calendar Year or Fiscal Year) for how the limit is to be calculated for the tax in the Limit Range field, or click the down-arrow button to select the correct one.
Click the Save button.
Setting Up the Workers Compensation Tax to be Tracked and Paid:
From the Payroll screen, select the Maintenance menu and then Taxes.
Enter the ID for the workers compensation tax in the Tax ID field. If the ID is not known, click the down-arrow button or the Find button to select the correct one.
Enter the ID of the payee for which to write the check in the Payee ID field. If the ID is not known, click the down-arrow button to select the correct one, or press the Ctrl+F keys to access the search feature. If the Payee ID field is left blank, the system accumulates the amount withheld and expensed in the specified payable account(s) in General Ledger but will not print a check for the tax during a Payroll check cycle.
In the Payables Mask field, enter the mask for the balance sheet payable account that will retain the money expensed for the tax until the check is written. When entering the mask, be sure to follow the balance sheet account structure defined for your organization, key spaces between the account dimensions, and use Xs as placeholders.
Enter the mask for the expenditure account to be debited for the employer's share of the tax in the Expense Mask field; when the employer's share of the tax is expensed during a check cycle, the placeholders for the mask will be replaced with the valid account dimensions from the salary expense accounts defined for the employees. When entering the mask, be sure to follow the expenditure account structure defined for your organization, key spaces between the account dimensions, and use Xs as placeholders.
Click the Tax Table tab.
Enter the current year in the Tax Year field. Use the use the yyyy format, or click the down-arrow button to select the correct year.
Leave the Tax Rate field blank to use the applicable workers' compensation classes defined in Step 1 (above).
Enter the maximum dollar amount that the tax can be calculated up to in the Limit field.
Select the Calculate Employer Share field. A checkmark will appear in the box if the field is selected.
Enter the basis (Calendar Year or Fiscal Year) for how the limit is to be calculated for the tax in the Limit Range field, or click the down-arrow button to select the correct one.
Click the Save button.
_____ 4. Generate the workers compensation report(s).
