Worker's Comp Insurance

How do I set up for worker's comp insurance?

There are three basic ways to calculate worker's comp insurance in Goldenseal payroll software:

  • One rate for everyone in the company.
  • A different rate for each employee (or groups of employees).
  • A different rate for each type of work being done.

The way you'll set up Goldenseal depends on which way you calculate the insurance amount (which is probably set by the insurance company or tax agency that provides worker's compensation insrance.

HINT-- If you are not sure how worker's comp is calculated, check with your insurance agent, or the state agency that issues worker's comp.

Company- Wide Rate

If you pay a single percentage rate on payroll, follow these steps to set up worker's comp:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. Click the New button.
  3. Type in a name for the tax item.
  4. Enter Percent into the Calculation Method popup field, and enter the percent next to it.
  5. Enter Gross Wages into the Based on Popup field.
  6. Enter the insurance company (or other payee) into the Pay To Account field.
  7. Click OK.

NOTE-- The insurance rate may be based on straight-time wages, and it may have a minimum or maximum amount. If that is the case, enter the additional info into the other fields in the Tax Item record.

Rate for Each Employee

If you pay a different rate for each employee, follow these steps to set up the Tax Item:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. Click the New button.
  3. Type in a name for the tax item.
  4. Enter Comp Percent into the Calculation Method popup field.
  5. Enter Gross Wages into the Based on Popup field.
  6. Enter the insurance company (or other payee) into the Pay To Account field.
  7. Click OK.

Next, follow these steps to enter the rate charged for each employee:

  1. Choose Employees from the Accounts menu.
  2. Click the Payroll Setup button.
  3. Enter the employee's comp rate into the Worker Comp Percent field.
  4. Click OK
  5. Repeat steps 2 to 4 for each Employee account.

Rates for Different Types of Work

If you pay a different rate for each type of work done, follow these steps to set up the Tax Item:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. Click the New button.
  3. Type in a name for the tax item.
  4. Enter Category Comp Rate into the Calculation Method popup field.
  5. Enter Gross Wages into the Based on Popup field.
  6. Enter the insurance company (or other payee) into the Pay To Account field.
  7. Click OK.

NOTE-- If a state agency collects worker's comp insurance, the Tax Item may already be set up for you.

Next, follow these steps to enter the rate charged for each type of work:

  1. Choose Category Setup from the Costs menu, and choose Category Systems from the submenu.
  2. Choose a Category System, then click the Edit button.
  3. Enter the rate for each type of work in the Comp Rate column at the top.
  4. If you use subcategories for job costing, click on each category, and enter the Comp Rate for each subcategory.
  5. Click OK.
  6. Repeat steps 2 to 5 for each Category System.

For more about payroll in the Getting Started manual, click here.
For more about payroll in the Reference manual, click here.

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Click here for general information about Goldenseal payroll software.

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