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Administrator Guide
Last Updated: 2024-05-03
Steps: Set Up Workers Compensation (CAN)

Steps: Set Up Workers Compensation (CAN)

Workday calculates workers compensation for an employee's payroll processing province based on Workers Compensation Board (WCB) Code worktags associated with:
  • Pay results, if they exist.
  • The worker's payroll processing position.
When calculating a worker's pay, Workday determines the:
  • Worker's compensation rate in effect for the business location of the worker's payroll processing position. The location and the worker's compensation code display in the payroll results as worktags.
  • Job profile as of the payment date for the payroll run.
  1. Access the
    Maintain Workers' Compensation Codes
     task to define industry classification codes for workers compensation reporting.
    If a code pertains to more than 1 province (region), list all provinces that use it.
    Security:
    Set Up: Job
     domain in the Jobs & Positions functional area.
  2. Assign workers compensation codes to job profiles.
    1. Access the
      Create Job Profile
       or
      Edit Job Profile
       task.
      Security:
      Set Up: Job
       domain in the Jobs & Positions functional area.
    2. On the
      Worker's Compensation Codes
       tab, add a row for each worker's compensation code.
    To configure a worker who is physically in 1 province but has a different province of employment for tax purposes:
    • Verify that the
      Location
       field on the worker's position displays their physical location. A position's location determines which province calculates worker's compensation.
    • Verify that the
      Alternate Work Location
       field displays the province where the worker is taxed.
    Example: A remote worker works from home in British Columbia where there's no physical work location. After reviewing Canada Revenue Agency (CRA) guidelines, you determine the worker's province of employment is Ontario. For this worker, the position
    Location
     province is British Columbia and the
    Alternate Work Location
     is Ontario. Taxes (FIT/PIT, CPP, EI, ONEHT) calculate for Ontario. Workers compensation benefits calculate for British Columbia.
  3. Access the
    Edit Company Province CAN Tax Reporting
     task for a company and province.
  4. On the
    Workers Compensation
     tab, as you complete the fields in the
    Account Information
     and
    Workers Compensation Rates
     sections, consider:
    Account Information
    Start Date
    End Date
     (Optional)
    These dates must match the
    Workers Compensation Rates
     date range for each identification number.
    Identification Number
    Enter a new row for each identification number. The provincial worker's compensation board for your corporate entity provides the identification numbers.
    For Quebec, the
    Identification Number
     should match the Quebec identification number for remitting payroll to avoid exceptions on the
    Company Canada Year End Audit
     and the various
    Organization Exception
     audit reports.
    Workers Compensation Rates
    Start Date
    End Date
    These dates must match the
    Account Information
     date range for each identification number.
    The date range for rates must fall within the rate range for the account information.
    Code
    Enter a new row for each classification code.
    Identification Number
    Enter a new row for each identification number and code combination.
    Rate
    Enter the rate for each identification number and code combination.
    Example: Worker's Compensation Rates
    Start Date
    End Date
    Code
    Identification Number
    Rate
    1/1/2011
    12/31/2011
    541990 - All Other Professional, Scientific, and Technical Services (Canada)
    4577233-WCAQ
    3.10%
    1/1/2011
    12/31/2011
    561330 - Professional Employer Organizations (Canada)
    4577233-WCAQ
    3.55%
    1/1/2011
    12/31/2011
    541990 - All Other Professional, Scientific, and Technical Services (Canada)
    9876544-WCAQ
    3.20%
    1/1/2011
    12/31/2011
    561330 - Professional Employer Organizations (Canada)
    9876544-WCAQ
    3.65%
    These reports reflect data from each identification number and report data based on pay result worktags. You can use these reports to identify and correct missing supplemental worktags:
    • Workers Compensation Summary
    • Workers Compensation Summary by Company
    • Workers Compensation Details
  5. Exempt employees from workers compensation, if applicable. Employees can't exempt themselves.
    1. Access the
      Add Worker CAN Tax Elections
       task.
      Security:
      Worker Data: Payroll (Company Specific) - CAN
       domain in the CAN Payroll functional area.
    2. Select the
      Exempt
       check box in the
      Province Workers Compensation
       section of the
      Province
       tab.
  6. Access the
    Edit Earning
     task to assign earnings that are exempt from worker's compensation to the appropriate pay component group.
    Pay Component Group
    Description
    Workers Compensation Other
    Add earnings that are subject to workers compensation reporting, but not province income tax.
    Typically, these earnings are for workers who might not be employees or whom you pay outside of Workday Payroll. For reporting purposes, you must include these wages in workers compensation reporting.
    Workers Compensation Exempt
    Add earnings that are exempt from worker's compensation.
    Workday subtracts exempt wages from gross T-4 or RL-1 wages to determine insurable (assessable) income.
  7. If an earning applies to some, but not all provinces, you can include or exclude it from calculations.
    Example: If pay in lieu of notice is subject to worker's compensation in all except these provinces, add a rule to handle these exceptions:
    • British Columbia
    • Quebec
    • Saskatchewan
    • Yukon
Review these reports to ensure you defined worker's compensation codes and rates correctly:
  • View Workers' Compensation Codes
  • View Workers Compensation Rates
  • Audit - Workers Compensation Codes In Use with No Rate
  • Workers' Compensation Code Exception Audit
After calculating payroll, use these reports to view worker's compensation calculations, and to prepare for tax filing:
  • Workers Compensation Summary
    : Displays totals by province.
  • Workers Compensation Summary by Company
    : Displays totals by company.
  • Workers Compensation Details
    : Displays totals by employee within each province.
  • Tax Remittance Details
    : Includes Quebec CNESST tax amounts by worker.
  • Tax Remittance Summary
    : Includes total deductions for Quebec CNESST by federal Payroll Account Number.
  • Tax Remittance Summary - Quebec
    : Includes total deductions by Quebec CNESST by Quebec Identification Number.
You can also use these report fields in custom reports:
  • Worker's Compensation Code (Worktag)
    , which returns the worker's compensation code from the WCB Code worktag for pay results.
  • Worker's Compensation Tax Rate (Worktag)
    , which returns the worker's compensation tax rate based on the WCB Code worktag for pay results.
If necessary, use payroll input to override the:
  • Work province pay component worktag for employees who work in more than 1 province.
  • Worker's compensation code supplemental worktag to create prior period adjustments, or manually input a worker's compensation code for a specific province. These worktags only display with a worker's compensation deduction for payment dates on or after 2018-01-01.
To file federal and Quebec provincial tax remittance information, you can use the
Get Periodic Company CAN Tax Remittance Data
 web service. This web service includes provincial worker's compensation information and provincial employer payroll and health tax information. You can exclude Worker Compensation Board tax items from this web service. Partners can use this feature to process necessary payments on your behalf. This web service doesn’t support custom tax deductions.