Setting up workers' compensation taxes

In Ajera, you set up workers' compensationClosed An employer-paid form of insurance that provides compensation for employees who are injured in the course of employment. Rates for the insurance tax can be different based on occupation. in much the same way that you set up any tax.

Step 1: Set up workers' compensation taxes

For each workers' compensation tax rate that you need to set up, set up a tax ( > Setup > Company > Payroll Setup > Taxes), being sure to do the following:

  1. In the Description field, type the name for the tax that you want to appear on lists and reports in Ajera and on paycheck stubs.
Note: Include the workers' compensation classification (for example: Office or 8810).
  1. In the Type field, select Workers Compensation.
  2. Select the Employer tax check box.
  3. In the Workers' Comp Code field, type the ID provided by the workers' compensation provider.

This code represents different tasks which have different workers' compensation codes. For example, the survey activity has a different code from the drafting activity. 

  1. In the Rate field, enter the percent as a whole number (for example, enter 2% as 2.00).

Step 2: Add the tax to employees

For each employee that you need to add a workers' compensation tax, do the following:

  1. From the > Setup menu, click Employees.
  2. Select the employee you want to add the worker's compensation tax for.
  3. Click the Payroll Taxes tab.
  4. In the Additional Taxes table at the bottom of the window, on the next available row, enter the following information:
For Do this

Tax

Select the workers' compensation tax you set up that applies to this employee.

On demand

If you do not want this additional tax automatically included for every paycheck, select this check box.

When running payroll, you can choose to include all on-demand taxes for all employees.

Supp

Select this check box to automatically deduct this tax from a supplemental pay check, such as a bonus.

If you want to deduct this tax only on supplemental paychecks, you must also select the On Demand check box.
  1. Click Save.

When you run payroll, Ajera processes the tax like any other employer-paid tax.