|
|
|
|
|
|
|
Contents
|
The Washington Workers’ Compensation (WC) Calculations process determines the Workers’ Compensation deduction and benefit amounts to be used in a payroll run. It is called during the initial stages of Skyward’s Payroll Calculate process, and will calculate the number of employee work hours as well as the hours for which Workers’ Compensation premiums are due. It will then calculate the amounts for Workers’ Compensation deductions and/or benefits and update the payroll’s deduction/benefit records with these amounts.
Work hours are also later used in the calculation for Unemployment hours, wages, taxable wages, etc.
There are two methods for calculating WC, ‘Actual’ or ‘Average’. Both methods are approved by the Department of Labor and Industries (L&I).
Actual Method
The hours for the actual calculation method are based upon:
Payroll Period End Date
Contract Calendar Hours (work days, non-work day, holidays, non-default hour days)
Contract Work Start, Work End Dates
Contract Hours per Day
Non-contract Work Hours (pay records, payroll worksheets)
Paid Time Off (sick leave, vacation)
For each selected contract, the payroll calculation process calculates (current) Work Hours by calculating the difference between To-date Possible Hours (through the Payroll Period End Date) and to-date Actual Hours. The contract possible hours are calculated using the contract’s hour/day, work start/end dates, and associated calendar.
For each person and
For each selected contract…
From the Contract Work Start date through the Payroll End date…
Default hours calendar work days x contract hours per days
for each non-default calendar work day…
+ ( non-default calendar work day hours / default calendar hours) x contract hrs/day
+ Pay record work hours
Less paid time off hours not previously processed through a payroll
= Actual L&I Hours
Example:
Elly Mae Clampet
Contracts:
Custodial – part time
Work Start: September 1, 20xx
Work End: August 31, 20xx
Calendar: AA – Full Time, Default 8 hours/day
Contract Hours/day: 4 hours/day
September 4, 20xx – Labor Day (paid holiday hours are not counted for L&I)
Payroll Period End Date: September 15, 20xx
Pay Record: 2 hours overtime
Time Off: 8 hours sick leave
Possible work hours through September 15, 20xx = 40 hours
Less historical L&I hours 0 hours
+ overtime 2 hours
Less sick leave 8 hours
--------------
34 hours
Note: The calculation determines the number of hour from the Work Start Date through the Payroll Period End Date vs the number of hours previous processed through payrolls to determine the current value. Be aware, if a new contract is entered mid-year with a Work Start Date to the beginning of the year, the calculation will apply all of the unprocessed hours from the beginning of the year through the Payroll Period End Date to the current payroll.
Average Method
The hours for the average calculation method are based upon the Employee’s Employee Type code associated with the Employee Type table. The Employee Type table retains the annual number of L&I hours. Without regarding for paid holidays, paid leave, actual hours worked, the annual hours are calculated based upon the annual hours divided by 12:
Average L&I Hours / 12 = Average L&I hours
1920 / 12 = 160
(Reference WAC 296-17-31021: Units of Exposure - Alternatives to Actual Hours Worked - Salaried Employees – Assumed Hours.)
Distribution of the Calculation to Account Codes
The above calculated benefit values can be distributed to the employees’ benefit accounts using two methods.
The distribution is based upon two possible methods:
Current Work Hours or
Current Gross Pay
The distribution method is controlled by a checkbox on the Payroll General Options screen. Path: System Admin / Financial Management / FM Config / Payroll / General Options
[ ] Distribute WC charges based on WC hours
The hours will be spread based on the ratio of Current Work for the Pay record to the total Current Work Hours for all Pay records with active Workers' Compensation deductions or benefits.
Or
The hours will be spread based on the ratio of Current Gross Pay for the Pay record to the total Current Gross Pay for all Pay records with active Workers' Compensation deductions or benefits.
This process may only be performed by district users with permission to perform payroll calculations. To see the results of the above calculations, you can view or print the Workers’ Compensation Payroll Report from Saved Reports after running the Check Register process.
Background to Washington Workers' Compensation Reporting
|
Report |
Purpose |
|
Provides information used to complete the Employer's Quarterly Report for Industrial Insurance, required by the Department of Labor and Industries. Path: Human Resources / Payroll / Reporting |
|
|
Provides data on the Workers' Compensation deductions and benefits calculated during a payroll run. Use this report to research questions about the amounts calculated, or to reconcile to an employee’s check detail. Path: Human Resources / Payroll / Current Payroll / Check Register |
|
|
projects the Workers’ Compensation benefit expense that will be incurred based on a Salary Negotiations Plan. Path: Human Resources / Salary Negotiations / Calculate / Generate Plan Detail |
|
|
Views or maintains the table used to determine the Workers’ Compensation deduction and benefit amounts during payroll and budget processing. Path:
|
|
|
Copies Workers’ Compensation rate records associated with one Salary Negotiations plan to another Salary Negotiations plan. Path: Human Resources / Salary Negotiations / Setup / Import Assignments from Sal Neg Plans |
|
|
Create, update, and delete employee types for Workers' Compensation records. Paths: Human Resources / Setup / Codes / Employee Types, or Human Resources / Profile / Codes / Employee Types |
Page Updated 03/2011