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Worker’s Compensation Setup Guide

Worker’s Compensation insurance (WCI) paid on the employees behalf must be recorded using a Benefit Code.

It is recommended that at least one Benefit Code is setup per province where Worker’s Compensation will be paid. The Benefit Code created in this step will later be linked to the Worker’s Compensation Group to record the benefit expense and accumulated insurable earnings.

Add Benefit Code

Benefit Codes are created, modified, and deleted from Deduction/Benefit Codes within Canadian Payroll.

The setup and creation of a Benefit Code for recording provincial Worker’s Compensation benefits will be covered in this section.

  1. Open Canadian Payroll > Employer Payroll Tables > Deduction/Benefit Codes.

  2. Add a new Benefit Code by pressing Insert to open the Deduction/Benefit Code settings.

    image
    Figure 1. Deduction/Benefit Code added using the Insert button
    Tip:
    You can add a new Benefit Code by pressing Ctrl-Insert on the keyboard

Basic Setup

Setup for the Benefit Code will include setting the benefit as a Worker’s Compensation benefit, and specifying a G/L account for recording the benefit expenses.

  1. Enter a Benefit Code ID into the Code field.

  2. Enter the Full Name to use for the Benefit Code.

    image
    Figure 2. Example Benefit Code ID of 989 and the Full Name
    Notes:
    • Benefit Code ID must be a number in the range 500 to 999.

    • Full Name is required and can be up to 128 characters long.

Deduction Data Setup

  1. Open the Deduction Data tab of the Benefit Code settings.

  2. Enter the Short Name for the Benefit Code.

  3. From the Type drop-down select Worker’s Comp.

  4. From G/L Liability Accounts select the Benefit G/L account to use.

image
Figure 3. Deduction Data setup steps.

Save Benefit Code

  1. Save the Benefit Code by pressing OK.

Worker’s Compensation Group

Worker’s Compensation Groups contain the rate for the Worker’s Compensation insurance premium, the maximum assessable earnings, and are linked to the Benefit Code for the Worker’s Compensation benefit.

  1. Open Canadian Payroll > Taxation & Assessment Tables > Worker’s Comp Groups

  2. Add a new Worker’s Comp Group by pressing Insert to open the Worker’s Comp Groups settings.

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Figure 4. Worker’s Compensation Group added using the Insert button

WCB Data Setup

  1. Open the WCB Data tab of the Worker’s Compensation Groups settings.

  2. Enter the Worker’s Compensation Group ID.

  3. Enter a short Description of the Worker’s Compensation Group.

    image
    Figure 5. Example WCB Data setup with a Worker’s Compensation Group ID of 501 and a description of the group.
  4. Enter the WCI premium rate into the Rate Per $100 field.

  5. Enter the Max Assessable Earnings.

    Tip:
    If maximum assessable earnings are unlimited, enter 999,999,999 for Max Assessable Earnings.
    image
    Figure 6. Example WCI premium rate of $1.78 per $100, with no maximum assessible earnings.
  6. From the Benefit Code drop-down select the appropriate Worker’s Compensation Benefit Code.

  7. Save the Worker’s Comp Group by pressing OK.

    image
    Figure 7. Example Benefit Code for the province is linked with the Worker’s Compensation Group.

Worker’s Compensation Insurable Earnings

Insurable Earnings can included from Earning Codes and Benefits Code may change per province. Each required Earnings Code and Benefit Code is added to the Worker’s Compensation insurable earnings using the built-in (A2) WCB Dollars accumulator.

Insurable Earning for Earning Codes

  1. Open Canadian Payroll > Employer Payroll Tables > Earning Codes.

  2. Open the Earning Code settings by double clicking on an Earning Code in the list.

  3. Open the Accumulators tab of the Earning Code settings.

  4. Expand the (A2) WCB Dollars (Amount) option under the Add Benefits column.

  5. Enable the option for the required Worker’s Compensation Benefit Code.

  6. Save the changes to the code by pressing OK.

image
Figure 8. Steps for enabling insurable earnings for Earning Code.

Insurable Earning for Deduction & Benefit Codes

  1. Open Canadian Payroll > Employer Payroll Tables > Deduction/Benefit Codes.

  2. Open the Deduction/Benefit Code settings by double-clicking on a code in the list.

  3. Open the Accumulators tab of the Deduction/Benefit Code settings.

  4. Expand the (A2) WCB Dollars option under the Add Benefits column.

  5. Enable the option for the required Worker’s Compensation Benefit Code.

  6. Save the changes to the code by pressing OK.

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Figure 9. Steps for enabling insurable earnings for Deduction/Benefit Code.

Review WCB Insurable Earnings

Review insurable earnings from the Earning WCB tab of the Worker’s Comp. Group settings.

  1. Open Canadian Payroll > Taxation & Assessment Tables > Worker’s Comp Groups.

  2. Open the Worker’s Comp Group settings by double-clicking on the group to review.

    Caution:

    Earning, Deduction, and Benefit Codes can be listed without being enabled for Worker’s Compensation insurable earnings. Review the WCB Earnings, Deductions, and Benefits column values for each code (a Yes value indicates that the code is included with the insurable earnings).

    Tip:
    Click on the column heading to sort the column by Yes or No

Review Earning Codes

  1. Open the Earning WCB tab.

  2. Review the listed Earning Codes for WCB Earnings.

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Figure 10. Example of the Regular Earnings code enabled for Worker’s Compensation earnings (note the Yes value under WCB Earnings).

Review Deduction/Benefits Codes

  1. Open the Deduction/Benefits WCB tab.

  2. Review the listed Deduction/Benefit Codes for WCB Deductions or WCB Benefits.

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Figure 11. Example of the RRSP Benefit Code enabled for Worker’s Compensation earnings (note the Yes under WCB Benefits).
J
Jack is the author of this solution article.

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