Set up State Insurance Codes
Define rates for workman’s comp and/or general liability insurance by state and insurance code.
For each applicable state, assign the appropriate worker's comp and/or general liability insurance codes, and then set up the applicable deductions, liabilities, and rates. For most states, there will typically be a liability code for Workmen’s compensation that is set up with a method of Straight Time Equivalent. You can use the same liability code on multiple insurance codes/states, but the rate will be different by state/insurance code. You may use additional codes for special state requirements.
Pre-requisites for this task:
Set up the applicable insurance codes in HQ Insurance Codes
Set up the applicable deductions and liabilities in PR Deductions/Liabilities
- From the Main Menu, select .
- In the State field, enter the state for which you are setting up insurance information or press F4 to select from a list of valid states.
- In the Insurance Code field, enter a valid insurance code or press F4 to select from a list of valid insurance codes.
- In the Description field, enter a description of this state/insurance code.
- If deductions and liabilities for this insurance code are subject to a weekly wage limit, select the Subject to Weekly Earnings Limit check box. Then enter the earnings limit in the Earnings Limit field. workmen’s compensation is only calculated on wages up to a limit per insurance code
- If you use an override insurance code when pay rates exceed a threshold rate, select the Use Override Code When Pay Rate Exceeds Threshold Rate check box. Then enter the threshold rate and override code in the Threshold Rate and Override Insurance Code fields.
- Save the record.
- Click the Dedn/Liab tab.
- In the DLCode field, enter the applicable deduction or liability code.
- In the Rate field, enter the applicable rate for calculating the deduction or liability amount.
- Save the record.
- Enter additional deductions and liabilities as needed.
You can now assign insurance codes when entering timecards and the system will apply the applicable deductions and liabilities during payroll processing.