About California Override Insurance Codes

Currently only required in California.

The Posting Override section in PR State Insurance Codes allows you to indicate whether an override insurance code will default for timecard wages that exceed a threshold. If you select the Use Override Code When Pay Rate Exceeds Threshold Rate check box, you must then specify a threshold rate and an override insurance code. For example, concrete work has insurance codes based on the pay rate. Hourly wages for concrete work under $17 use insurance code 5201, whereas hourly wages for concrete work equal to or greater than $17 use insurance code 5202. So in this case, you would set up insurance code 5201 with the check box selected, enter a threshold rate of 17.00, and enter 5202 as the override insurance code.

When entering timecards, the system compares the employee's pay rate plus applicable add-on earnings to the threshold rate. Applicable add-on earnings are those where the earnings code is included in the liability's basis codes and where the calculation method is F-Factored Rate per Hour, H-Rate per Hour, or V-Variable Factored Rate.

If the combined pay rate and add-on earnings are equal to or greater than the threshold rate, the override insurance code is used. If the combined pay rate and add-on earning are less than the threshold rate, the employee's insurance code (defined in PR Employees) is used.

Note: When determining the add-on earnings to include, the system uses the same hierarchy used to determine the pay rate (i.e. craft/class template, craft template, craft/class, craft, employee, respectively). It will use the highest rate found in the hierarchy and if applicable add-on earnings exist for that pay rate, they will be included.