Configure Workers' Comp Legal Entity Policies and Rates

This section describes how to configure the workers' compensation account information and rates for each legal entity. This defines what states or provinces the legal entity operates in, the workers' compensation account or policy numbers, and a rate for each classification code which determines the amount of premiums employees pay.

Before You Begin: This configuration requires that the appropriate legal entities have already been set up in Dayforce. For more information about setting up legal entities, see Org Payroll Setup > Legal Entity.

Configurations in the Workers Comp tab are used to create a report of workers compensation amounts to be used to help you manage workers compensation claims through your own company or any third party vendor that your company uses to manage workers compensation liability and claims. Note that deductions and payees can be configured to collect and remit amounts to your third-party vendors.

Workers' compensation configuration information

Country	Details
Canada	In Canada, workers' compensation premiums are paid for by employers on behalf of employees. Some Canadian legal entities have a blended rate, which is an average rate that represents the average risk associated with working in the legal entity's business. This blended rate is typically lower and overrides any individual default rates specified per code.
United States	In the United States, the workers' compensation rate can apply to the employer or the employee. Usually, if an employee pays workers' compensation premiums then the employer pays a matching amount. Important: This topic does not cover configuration for required workers compensation taxation in the states of NM, ND, OH, OR, WA, or WY. More information is avaialble in Tax Settings and Tax Qualifiers for Tax Authorities about how to configure those taxes to be collected, remitted, and filed through the Dayforce Tax Service.

Employer and Employee Rates

Workers' compensation rates are specified as a percentage amount, such as 14.9%, by which Dayforce multiplies an employee's earnings to determine the amount of the workers' compensation premium.

For the employer’s rate, for both Canada and the United States, you enter the percentage of an employee's earnings that the employer pays into workers' compensation, using the decimal format of the rate’s percentage.

For the employees rate, for the United States, you enter the percentage of an employee's earnings using the decimal format to set the percentage of the rate. For Canada, Dayforce automatically uses the system-configured employer workers' compensation deduction definition.

For example, for a rate of 14.9%, or 0.149, you enter the percentage rate 14.9 in the Employer Rate field. Dayforce multiplies the employee's earnings by this rate and deducts the result from the employee's pay as the workers' compensation premium.

Configure legal entity workers’ compensation policies

To configure workers' compensation policies for a legal entity:

1. Go to Org Setup > Org Payroll Setup > Legal Entity. Dayforce shows the legal entities that have already been configured.
2. Create a policy:
   1. Select a legal entity, click the Workers Comp tab, and then click Add.
   2. In the State / Province drop-down list, select the name of the state or province to which the code belongs.
   3. In the Account / Policy Number field, enter the legal entity's workers' compensation account or policy number.
   4. Enter a name and description of the policy.
   5. In the Start Date field, enter the date that the policy becomes effective, and optionally, enter an effective end date. By default this field is blank and the policy does not expire.
   6. (US only) Select an applicable earning grouping in the Earning Grouping drop-down list.
   7. (Canada only) Enter the employer's blended rate in the Blended Rate field, if the company has one.
3. Set a rate for the policy:
   1. In the Rates section, click Add.
   2. In Workers Comp Class Code drop-down list, select the classification code. Dayforceshows only those classification codes that were configured with the same state or province as the legal entity's State or Province.
   3. In the Start Date field, specify when the rate becomes effective, and, optionaly, enter an end date.
   4. In the Employer Rate field, enter the percentage of an employee's earnings that the employer pays into workers' compensation, using the decimal format of the rate’s percentage.
   5. In the Employee Rate field (US only), enter the percentage of an employee's earnings using the decimal format of the rate’s percentage.
   6. Select the Is Default checkbox to configure the rate as the default for the corresponding classification code.
4. Click Save.