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
- Navigate to Payroll Setup > Payroll Categories.
- Search for the payroll category '502 - Vacation Pay' (accrual) and change "Basis" to 'Units'.
- Navigate to the formula tab and deactivate the "Update" toggle in order to remove the formula.
- Save your changes and return to the list of payroll categories.
- Search for the payroll category '105 - Vacation Paid' (earning) and change "Basis" to 'Units'.
- Save your changes.
Creating a New Workers' Compensation Payroll Category
- Navigate to Payroll Setup > Payroll Categories.
- Click "+ New Payroll Category".
- Select "Tax".
- At the top of the setup page, change the 'Federal' dropdown field to 'Provincial' and select your province in the second dropdown field that appears.
- For "Basis", select 'Percentage'.
- For "Paid by", select 'Employer'.
- 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".
- Type in "WCB" in "Name". If you have more than one WCB, differentiate each one.
- For "Percentage", enter your rate.
- For "Maximum", toggle it on and select 'Employee YTD gross'. Enter the correct maximum.
- Save your changes. Repeat steps 2 through 11 for each WCB payroll category you need to create, for each rate.
Assigning Your Tax Form Boxes to Your New Workers' Compensation Payroll Category
- Navigate to Payroll Setup > Assign Tax Form Boxes.
- Search for your new workers' compensation payroll category.
- Search for the 'WCB' tax form box. Ensure that it is activated.
- Save your changes and return to the list of payroll categories.
- Search for '103 - Overtime 1.5' and look for the 'WCB' tax form box. Ensure that it is activated for 'OT'.
- Save your changes and return to the list of payroll categories. Repeat steps 5 and 6 for '104 - Overtime 2'.
- Search for '105 - Vacation Paid' (earning) and look for the 'WCB' tax form box. Ensure that it is activated for 'Vacation Paid'.
- Save your changes.
Editing Your Employees' Master Paycards
- Navigate to Payroll Employees > Assign Payroll Category.
- Select an employee.
- Click "+ Add New".
- Search for the new WCB tax payroll category you created.
- Click "Save" to add this new payroll category to the employee.
- Search for '102 - Hourly Wages' and enter the correct units and rate.
- Search for '105 - Vacation Paid' (earning) and enter the correct units and rate.
- Search for '502 - Vacation Pay' (accrual) and enter the correct units, rate, and opening balance (if applicable).