Workers' Compensation Calculations

4 Selection Criteria

The following criteria are used by the program to perform payroll calculations:

1. Pay record processing:  This process performs calculations for all Pay records (HPATRP-TRAN-PAY) table records being processed in the current payroll. To perform the required calculations, Pay records for an employee are processed as a group.

2. Criteria for Current Work Hours calculation: Current Work Hours (HPATRP-TRAN-PAY.WA-HPATRP-WORK-HOURS) are calculated for each Pay record in the payroll. This field represents the actual work hours associated with the Pay record.

3. Current Work Hours Calculation:  The calculation of Current Work Hours for an individual Pay record depends on whether or not a contract exists for that Pay record.

1. If an active contract record exists matching the Pay Code (HPADCP-PAY-CODES) on the Pay record, then Current Work Hours are calculated using the calendar associated with the contract.

2. If no active contract exists, the Rate Type (HPADCP-RATE-TYPE) value, or "flag" stored on the Pay Codes record associated with the Pay record is examined.

3. If Rate Type (HPADCP-RATE-TYPE) has a value of "Yes", then the Pay record is for hourly pay and contains the Current Work Hours.

4. If Rate Type (HPADCP-RATE-TYPE) has a value of "No" then no work hours are associated with the Pay Record and Current Work Hours (HPATRP-TRAN-PAY.WA-HPATRP-WORK-HOURS) are "0".

4. Hourly Pay Hours: Pay Records for hourly pay contain the work hours in the Pay Factor (HPATRP-TRAN-PAY.HPATRP-FACTOR) field. The Pay Factor is multiplied by the Number of Payments in a Payroll Cycle (HPATRP-TRAN-PAY.HPATRP-NBR-PAYS) to yield Current Work Hours.

5. Contract Pay Hours:  

1. Contract Pay Hours are calculated in the following way:

2. 1. 1. 1. 1. To-date Possible Hours for the contract are the number of work hours an employee would have if they worked their normal work hours for all active days in the district calendar, from their contract start date to the current period end date.
               
               First, the To-date Possible Hours for the contract are calculated using the calendar associated with it via the Calendar ID (HPACON-CONTRACT.WA-HAACAM-ID).

            2. To-date Actual Hours are the number of hours the employee actually worked from their contract start date to the current period end date. These are calculated from any Pay History (HPAHDP-HIST-PAY) records for the contract.  

            3. The To-date Actual Hours are then subtracted from the To-date Possible Hours, giving Current Work Hours.

            4. Finally, if multiple pay records exist for the same contract, then Current Work Hours will be distributed across all based on the ratio of the Pay Factor (HPATRP-TRAN-PAY.HPATRP-FACTOR) for each Pay record to the total of the Pay Factor amounts on all Pay Records for the contract.

   2. 2. To-date Possible Hours:  These are calculated by accumulating the hours and minutes from the calendar for each day that has elapsed from the employee’s contract start date, up to and including the payroll period end date or contract end date – whichever is earlier.
         
         To accomplish this, select the Employee Contract Record that meets the following criteria:

      3. 1. 1. The Name ID (HPACON-CONTRACT.NAME-ID) and Pay Code (HPADCP-PAY-CODES.HPADCP-PAY-CODE) match the pay record.

            2. The Contract Start Date (HPACON-CONTRACT.HPACON-START-DTE) is less than or equal to the Period End Date (HPATRP-TRAN-PAY.HPATRP-PE-DTE) and greater than or equal to the Contract Stop Date (HPACON-CONTRACT.HPACON-STOP-DTE)

            3. The following Calendar Days (HAACAD-CAL-DAYS) table records are selected:

• • • • • • records associated with the contract, and

          • having a Calendar Day (HAACAD-CAL-DAYS.HAACAD-DAY) greater than or equal to the Contract Start Date (HPACON-CONTRACT.HPACON-START-DTE), and

          • less than or equal to both the Contract Stop Date (HPACON-CONTRACT.HPACON-STOP-DTE) and Period End Date (HPATRP-TRAN-PAY.HPATRP-PE-DTE).

          • Days where the Day Type (HAACAD-CAL-DAYS.HAACAD-DAY-TYPE) is "Inactive" are excluded.

  • 3. The hours and minutes accumulated for a day are dependent on the relationship between the following:

  • • • • • Active Hours (HAACAD-CAL-DAYS.HAACAD-ACT-HRS) and Active Minutes (HAACAD-CAL-DAYS.HAACAD-ACT-MIN) on the Calendar Days record, and

          • Default Hours (HAACAM-DEF-HRS-PER-DAY) andDefault Minutes (HAACAM-DEF-MIN-DAY) from the Calendar Master (HAACAM-CAL-MST) table record, and

          • Hours (HPACON-CONTRACT.HPACON-NBR-HRS) and Minutes (HPACON-CONTRACT.HPACON-NBR-MIN) on the Contract. [Details of this relationship]

Once all Calendar Days records have been processed, the accumulated minutes are converted to hours and added to the accumulated hours, giving To-date Possible Hours.

• • 4. To-date Actual Hours for a contract: These are calculated by accumulating the following:

  • 1. Work Hours (HPAHDP-HIST-PAY.WA-HPAHDP-WORK-HOURS) from all Pay History records

    2. whose Pay Code (HPADCP-PAY-CODES.HPADCP-PAY-CODE) matches the contract, and

    3. whose Pay History Check Date (HPAHDP-HIST-PAY.HPAHDP-CHK-DTE)

  • • • • • falls between the Calendar Master Start Date (HAACAM-CAL-MST.HAACM-START-DTE) or the Contract Start Date (HPACON-CONTRACT.HPACON-START-DTE), whichever is later; and  

          • falls between the Contract Stop Date (HPACON-CONTRACT.HPACON-STOP-DTE) or Current Payroll Transactions Period End Date (HPATRP-TRAN-PAY.HPATRP-PE-DATE), whichever is earlier.

6. Criteria for Workers’ Compensation Hours Calculation:  These hours are stored on the pay record in the Workers' Compensation Hours (HPATRP-TRAN-PAY.WA-HPATRP-WC-HOURS) and are calculated only for those Pay records subject to Workers’ Compensation -- where there is an active Workers’ Compensation deduction or benefit in the payroll. The presence of an active deduction/benefit is determined by the following criteria:

7. 1. 1. the existence of an associated Pay Transaction table deduction or benefit (HPATRD-TRAN-DED or HPATRF-TRAN-BEN) record with a Group Code (HPATRD-TRAN-DED.HPATRD-GRP-CODE or HPATRF-TRAN-BEN.HPATRD-GRP-CODE) value of "Tax", and

      2. a Tax Type (HPATRD-TRAN-DED.HPATRD-TAX-TYPE or HPATRF-TRAN-BEN.HPATRD-TAX-TYPE) of "W" for Workers' Compensation Tax, and

      3. a Number of Payments in a Payroll Cycle field (HPATRD-TRAN-DED.HPATRP-NBR-PAYS or HPATRD-TRAN-BEN.HPATRP-NBR-PAYS) with a value greater than "0".  For all other Pay records the field will be "0".

8. 7. Workers’ Compensation Hours Calculation Types:  Two types of calculations are used to determine Workers’ Compensation hours:

   8. 1. At the employer’s option, hours may be calculated using the Average Hours method or the Actual Hours method.

      2. The type of calculation is specified in the Calculated by Average Method field (HAAETY-EMP-TYPES.WA-HAAETY-WC-AVERAGE) in the Employee Type table.

      3. If the field has a value of "Yes", the Average Hours method applies.

      4. If the value is "No", the Actual Hours method applies.

9. 8. Workers’ Compensation Average Hours Calculation:  When calculating using Average Hours, Workers’ Compensation Hours for the employee are calculated as

   9. 1. Average Annual Workers' Comp Hours (HAAETY-EMP-TYPES.WA-HAAETY-WC-AVERAGE-HRS) divided by the Number of Payments in a Payroll Cycle (HPATRP-TRAN-PAY.HPATRP-NBR-PAYS).

      2. The hours must then be proportionally spread across all Pay records with the same Pay Frequency Code (HPATRP-TRAN-PAY.HPADCQ-FRQ-CODE) with active Workers’ Compensation deductions or benefits.

9. Workers’ Compensation Actual Hours Calculation:  When calculating using Actual Hours, the Current Work Hours are reduced by any Time Off Hours being processed in this payroll. The resulting Workers’ Compensation Hours are then proportionally spread among the Pay records subject to Workers’ Compensation.

10. 1. 1. Time Off Hours Calculation:  Time Off Hours are calculated by accumulating the Transaction Hours (HTOTRN-TRANS.HTOTRN-HRS) from the Employee Timeoff Transactions table records that are being processed by this payroll.

Time Off records being processed in the current payroll are identified by a Timeoff Calculated Method (HTOTRN-TRANS.HTOTRN-CALCULATED) field value of "Yes" and a Timeoff ID (HTOTRN-TRANS.HPAHDM-ID) value of "0".

1. 10. Spreading Workers’ Compensation Hours:  Once the total Workers’ Compensation Hours for an employee have been calculated using either the Average Hours orActual Hours method, they are spread proportionally across all Pay records being processed that have an active Workers' Compensation deduction or benefit.

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 ofCurrent Work Hours (HPATRP-TRAN-PAY.WA-HPATRP-WORK-HOURS) 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 (HPATRP-TRAN-PAY.HPATRP-PAY-GRS) for the Pay record to the total Current Gross Pay for all Pay records with active Workers' Compensation deductions or benefits.

1. 11. Deduction/Benefit Amount Calculation:  For all Pay records subject to Workers' Compensation, the deduction and/or benefit amount must be calculated and placed in the Deduction (HPATRD-TRAN-DED) or Benefit (HPATRF-TRAN-BEN) record(s).

   12. 1. Because Skyward processing for amount deductions/benefits uses the amount from the first record it encounters and distributes it on the basis of gross pay (or hours for Workers’ Comp), the amount placed in the deduction or benefit records must be the total for all Pay records where the deduction/benefit should be taken.

       2. For each Pay record, the deduction amount is calculated as Workers' Compensation Hours (HPATRP-TRAN-PAY.WA-HPATRP-WC-HOURS) times the total employee rate for the Workers' Comp Code associated with that Pay record. The benefit amount is calculated as Workers' Compensation Hours times the total employer rate for the Pay record’s associated Workers' Comp Code.  

       3. Once the amounts for all Pay records are calculated, the sum of those amounts is placed in the Deduction Amount (HPATRD-TRAN-DED.HPATRD-AMT) field on each Workers’ Compensation Deduction Record for the employee. The total benefit amount is placed in the Benefit Amount (HPATRD-TRAN-BEN.HPATRF-AMT) field on all Workers’ Compensation Benefit records.

2. 12. Employee/Employer Deduction and Benefit Rates:  The Workers' Compensation employee and employer rates are stored in the Workers' Compensation Rates (WA001WorkersCompRates) table.

   13. 1. The record with a Workers' Comp Code is selected that meets all of the following criteria:

       2. 1. 1. matches the Workers' Comp Code (HPADCP-PAY-CODES.WA-HPADCP-WC-CODE), and

             2. has a Plan ID (WA001WorkersCompRates.HPMPLN-ID) of "0", and

             3. has the latest Rate Effective Date (WA001WorkersCompRates.WCRateEffectiveDate) that is less than or equal to the Period End Date (HPATRP-TRAN-PAY.HPATRP-PE-DTE) that contains the rates to be used.  

   14. 2. Deduction amounts are calculated using the total of employee rates from the Workers' Compensation Rates (WA001WorkersCompRates) table: the Medical Employee Rate (WCMedicalEmployeeRate) plus the Employee Pension Rate (WCPensionEmployeeRate).  

       3. Benefit amounts are calculated using the total of employer rates from the Workers' Compensation Rates (WA001WorkersCompRates) table:

       4. 1. 1. Employer Accident Rate (WCAccidentEmployerRate) plus the Employer Medical Rate (WCMedicalEmployerRate) plus the Employer Pension Rate (WCPensionEmployerRate).

             2. If the Pay Codes (HPADCP-PAY-CODES) record does not carry a Workers’ Compensation code or an appropriate Workers' Compensation Rates (WA001WorkersCompRates) record cannot be found, a "0" rate will be used for both deductions and benefits, and an exception message will be placed in the Payroll Calculations Exceptions (HPACPX-CALC-EXCEPTS) table to inform the user.

Page Updated 04/2010

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