Working with 5-Payroll > 5-3 Payroll Management > 5-3-2 Workers' Compensation > Entering workers’ compensation codes

Entering workers’ compensation codes

In 5-3-2 Workers’ Compensation, you set up the table for workers’ compensation codes, rates, and experience modifiers. Sage 100 Contractor uses the table in conjunction with the workers’ compensation payroll calculation to compute the premium for each code category. How you set up the workers’ compensation codes depends on the requirements for each state.

Note: In some state, subcontractors are not required to carry workers’ compensation liability insurance. The general contractor often charges the subcontractor for the cost of coverage on the general contractor’s policy for the duration of the project.

To enter workers’ compensation codes:

1 Open 5-3-2 Workers’ Compensation.
2 In the Code# cell, enter the compensation code number.
3 In the Description cell, do the following:
a Enter a brief description of the code.
b If you created a numbering system for multiple state compensation codes, enter the insurance company’s compensation code following the description.
4 If you work in multiple states and have multiple policies, do the following:
a Enter the two-letter state abbreviation in the State cell.
b Open 5-3-1 Payroll Calculations and set up the corresponding payroll calculation with tax type 11-Workers Compensation, and enter the two-letter state abbreviationin the State cell for each state.
5 If the premium is computed using a percentage, enter the rate in the Employer % cell.
6 If the premium is computed using a dollar per hour rate, do the following:
a Enter the employee’s rate in the Employee Hrly cell.
b Enter the employer’s rate in the Employer Hrly cell.
7 In the Liability cell, enter the rate for your liability insurance.

Important! If your company is required to carry liability insurance, enter the rate in the Liability column.

8 In the Exper Mod cell, enter the modification number.
9 If you have a second experience modification, enter the modification number in the Add Exper Mod cell.
10 If there is a maximum wage limit, in the Maximum Wage cell, enter the maximum wage.
11 Repeat steps 2–10 for each compensation code.
12 On the File menu, click Save.

Tip: Companies that operate in a single state do not need to assign the state abbreviation to either the compensation codes or the payroll calculation for worker’s compensation.

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