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Workers' Compensation Setup

Nina Tchistiakova Updated by Nina Tchistiakova

The Workers' Compensation Setup screen is used to quickly assign workers' compensation codes to employees and income items. The setup screen is accessed from the States Setup tab of the Edit Employer/Payer Information screen by clicking the Setup button next to the Workers' Compensation grid.

The screen displays a list of employees. The user can select the workers' compensation code to use for each employee from the dropdown list next to the employee's name. A shortcut is to assign the most common code first. Then double-click the employee's name next to the code and you will have the option of using that code for all unassigned employees. Then the codes for individual employees can be changed as necessary.

Normally, workers' compensation information should be entered prior to entering payroll data. However, if payroll data has already been entered, then a checkbox allows existing paychecks to be assigned the same code as assigned to the employee. This should only be used if the user is setting up for workers' compensation after checks have already been entered. When using this screen to change employee code settings during the year, then do not check the box as it will reassign existing paychecks to the new employee setting. The code assigned to paychecks is used to group Income Items that are set to "Use employee default code". The code used is the code assigned to the employee when the paycheck was created. Checking this box or recalculating the paycheck will cause the code to change if the employee setting has changed.

The screen also displays a list of Income Items for the employer. Each Income Item must be assigned a workers' compensation code, EXEMPT, or "Use employee default code". If the code is set to EXEMPT, then any income assigned to that Income Item will not appear on the report. If each employee's wages are earned under one workers' compensation code classification then it is recommended to set all non-exempt income items to "Use employee default code" and set each employee to use the appropriate default code. However, if employees perform multiple duties that have different workers' compensation codes, then the user must create custom income items and assign specific codes to them. When an employee performs those duties, the wages must be assigned to that income item. Wages can be assigned to multiple income items with different WC codes on the same paycheck. The workers' compensation code assigned to employees is used to group wages and/or hours earned for Income Items set to "Use employee default code" under that code on the Workers' Compensation Report.

When finished assigning workers' compensation codes to all employees and Income Items, click the OK button to save the assignments or CANCEL to exit without saving.

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Workers' Compensation Report Setup