This section describes how to configure the deduction definition used by the application to calculate workers' compensation premiums. Workers' compensation premiums are listed under the deduction that you configure as the workers' compensation deduction on earning statements and in the Preview tab of Payroll.
Note: Workers' compensation deduction parameters are available only to US customers.
For Canadian customers, the application automatically uses the system-configured employer workers' compensation deduction definition.
Configuring deduction definitions for workers' compensation premiums follows a process similar to configuring any other deduction with some exceptions. See Deductions and the Deductions Tab.
To configure workers' compensation deductions, you need to configure the deduction with the following settings:
- Select the Workers Comp checkbox in the General tab of the Deductions tab in Payroll Setup > Earnings and Deductions.
- Note: When you select the Workers Comp checkbox, the application hides the Deduction Parameters, Deduction Limit, and Pay Group tabs as they aren’t needed for configuring workers' compensation deductions.
- Select an appropriate third-party payee that receives the workers' compensation premiums in the Payee tab. The application only displays payees configured with Workers Comp selected from the Payee Category drop-down list during their configuration.
Note: You must configure an eligible employee or employer deduction if either will be responsible to pay workers' compensation premiums.