Harmony P (US) - Workers' Compensation (WCB)

Note: This guide is only for US customers. If you are a Canadian customer looking to create a Workers' Compensation payroll category, please go to this article instead.

Description

You have one (1) or multiple WCBs or WSIBs and want to create a payroll category for each of them. 

Pre-Requisites

• You know what your WCB rate is 

• You know what your WCB maximum is 

Solution

Editing Your Vacation Payroll Categories

Your Workers' Compensation report is based off of units, or number of days, so you will need to edit your vacation payroll categories accordingly. If the payroll category remains in salary, your Workers' Compensation report will not be generated correctly. 

1. Navigate to Payroll Setup > Payroll Categories. 
2. Search for the payroll category '502 - Vacation Pay' (accrual) and change "Basis" to 'Units'. 
3. Navigate to the formula tab and deactivate the "Update" toggle in order to remove the formula. 
4. Save your changes and return to the list of payroll categories. 
5. Search for the payroll category '105 - Vacation Paid' (earning) and change "Basis" to 'Units'. 
6. Save your changes.

Creating a New Workers' Compensation Payroll Category

1. Navigate to Payroll Setup > Payroll Categories. 
2. Click "+ New". 
3. Select "Tax". 
4. At the top of the payroll category setup page, select 'State' in the dropdown field, if your workers' compensation is at the state level. You will need to select the state for this workers' compensation in the next field. If it is at the federal, level, you can leave the selection here to 'Federal'. 
5. For "Basis", select 'Percentage'.
6. For "Paid by", select 'Employer'. 
7. Type in a "Code" that is unique. By default, all tax payroll categories begin with "3", so we recommend following this structure, such as "305". 
8. Type in "WCB" in "Name". If you have more than one WCB, differentiate each one. 
9. For "Percentage", enter your rate.
10. For "Maximum", toggle it on and select 'WCB'. Enter the correct maximum. 
11. Save your changes. Repeat steps 2 through 10 for each WCB payroll category you need to create, for each rate.

Assigning Your Tax Form Boxes to Your New Workers' Compensation Payroll Category

1. Navigate to Payroll Setup > Assign Tax Form Boxes. 
2. Search for your new workers' compensation payroll category. 
3. Search for the 'WCB' tax form box. Ensure that it is activated. 
4. Save your changes and return to the list of payroll categories. 
5. Search for '103 - Overtime 1.5' and look for the 'WCB' tax form box. Ensure that it is activated for 'OT'. 
6. Save your changes and return to the list of payroll categories. Repeat steps 5 and 6 for '104 - Overtime 2'. 
7. Search for '105 - Vacation Paid' (earning) and look for the 'WCB' tax form box. Ensure that it is activated for 'Vacation Paid'. 
8. Save your changes. 

Editing Your Employees' Master Paycards

1. Navigate to Payroll Employees > Assign Payroll Category. 
2. Select an employee. 
3. Click "+ Add". 
4. Search for the new WCB tax payroll category you created. 
5. Click "Save" to add this new payroll category to the employee. 
6. Search for '102 - Hourly Wages' and enter the correct units and rate. 
7. Search for '105 - Vacation Paid' (earning) and enter the correct units and rate. 
8. Search for '502 - Vacation Pay' (accrual) and enter the correct units, rate, and opening balance (if applicable).