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Create and update codes for different types of employees, identifying each with an accompanying description and specific details for State reporting.
For each Employee Type the client should specify the method of calculation for Washington State Workers' Compensation (Workers’ Comp) taxes paid to the Department of Labor and Industries. For each Employee Type you may select either the ‘Actual’ or ‘Average’ calculation method.
Workers’ Comp Average: Yes/No
Answering the above prompt will determine the method of Workers’ Compensation Tax calculation for persons associated with the Employee Type. The choices are either ‘Average’ or ‘Actual’.
Workers’ Compensation - Actual Method
Taxable hours are based upon actual hours worked. Hours worked are derived from the payroll worksheet hours, pay record hours, and contracts (hours/day, work start, work stop, calendar). Paid and unpaid leave hours are not included in taxable hours.
Workers’ Compensation - Average Method
Taxable hours are based upon the annual Workers’ Compensation hours included in the Employee Type table. Leave hours are not reduced from the Average Hours to determine the taxable hours. Regardless of the actual hours worked, the Average Hours are the taxable hours. The portion of annual average hours is determined by the annual worker’s compensation hours divided by 12, less any WC hours already paid that month. For example, if the annual average hours were 2080, the monthly average hours would be 173.33.
TRS (Teachers’ Retirement System) – 1 Hrs per Day
The Teachers’ Retirement System plan 1 service credit is reported to the Department of Retirement Systems (DRS) in daily units to the nearest tenth of a day. Likewise, daily units are reported for employees enrolled in TRS plan 0, type 80. (Work hours + paid leave hours + paid holiday hours) / (TRS 1 Hours per day) = DRS days. All other retirement systems and plans report service credit in hourly units.
This data field creates a conversion rate of hours to days for persons associated with the specified Employee Type and one of the above system/plan/type. Enter the number of hours to be considered a full day for persons associated with the employee type. If the value is zero, the calculation will substitute 8 hours/day.
Codes may only be maintained by district users with administration access.
Workers' Comp Average: Select "Yes" to use the "average method" of computation, where time off hours do not reduce the taxable hours. The hours must then be proportionally spread across Pay records having active employees with Workers’ Comp deductions or benefits.
Workers Comp Actual: Select "No" to use the "actual method" of computation, where time off hours reduce taxable hours. When calculating using Actual Hours, the Current Work Hours are reduced by any Time Off Hours being processed in this payroll. The resulting Workers’ Comp Hours are then proportionally spread among the Pay records subject to Workers’ Compensation.
Workers' Comp Average: Enter the total number of Workers' Compensation hours associated with the employee type.
TRS - 1 Hours per Day: Teacher Retirement System Plan 1 requires service time be reported in days, instead of hours. Enter the number of hours in a full-time day.
This process is accessible from Setup / Codes, Payroll, and Profile.
Page updated 04/2010
