Workers Comp is entered into the system on the deductions screen, it is not a deduction. It's used to decrease (it's subtracted from) taxable wages that are used when calculating Federal Tax, FICA, MEDI and State Wages.
For example employee gross is 2,000.00 and 1,200.00 in entered for Workers Comp, the taxable federal wage is reduced to 800.00. It is then subject to any other modifications from pretax deductions such as Pension, 403(b) health care etc. the federal wage will only go to 0, not negative.
Care should be taken to insure that if a Dock is also entered, the remaining wage is sufficient to cover the workers comp. (You may need to spread the workers comp over a few payrolls.)
Helpful Tips:
- You MUST use the Amount field
- If you want the same amount to be applied over succeeding payrolls, use the Deactivate Date field.
- If it is a one-time payment, check off the one-time checkbox
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