Wokers' Compensation Calculations

SOLVED

Does anyone happen to know the 'behind the scenes' math for the 5-3-2 Workers' Compensation table window? I need to know how to set it up for the most accurate job/employee costing. For example does the Liability column calculation run after the Employer % column calculates or is before? I've probably run 20 sample company payrolls to try and figure it out and just can't seem to crack the code! I will be using the Employer %, Liability, Exper Mod, and Add Exper Mod columns. If any one knows the specific details for these formulas, I would love to know too!

  • +1
    verified answer

    Example:
    Employee is paid $20 an hour and works 40 regular hours and 25 overtime hours. Employer % for WC is 0.3900 (%), Liability rate is 0.780000 (NOT USED FOR WORKERS COMP), Exper Mod (Experience modification rate) is 0.7800, Add Exper Mod (experience modification rate, which is a collection of additional charges and credits added by the insurance carrier) is 0.772935.

    Wages are $1,550

    Overtime (Premium @ .5 of regular wage rate) is $250

    Subject (Wages - Overtime) is $1,300

    Comp (Subject * Rate %) $1,300 * 0.3900 = $5.07

    Total (Comp * Mod 1 * Mod 2) $5.07 * 0.780000 * 0.772935 = $3.05

    NOTES:
    Liability rate is not used for workers comp, but is calculated and posted as a separate GL entry. 
    Sage rounds each calculation before moving on to the next calculation.

  • 0 in reply to Neil Macernie

    Thank you Neil! Examples are SO helpful!! I appreciate you taking the time to help me out! I was also directed to Solution ID# 109876 in Sage Knowledgebase (for anyone else looking for more info on this topic). 

  • 0 in reply to Lilah Kara

    Hi Lilah, happy to see that the community helped you figure out a solution!Tada

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