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Administrator Guide
Last Updated: 2024-03-22
Set Up Washington Labor and Industry Rates and Codes (USA)

Set Up Washington Labor and Industry Rates and Codes (USA)

Enter compensation codes and job details for workers in Washington State on the
Maintain Workers' Compensation Codes
 task.
Security:
  • Set Up: Job
     domain in the Jobs & Positions functional area.
  • Set Up: Payroll - Company Specific (Taxes) - USA
     domain in the USA Payroll functional area.
You can configure codes and rates for Washington that Workday uses when calculating worker compensation for an employee’s primary work state. When you enter the codes and rates from the Washington State Department of Labor and Industries (WA L&I), Workday uses them for taxation and reporting purposes and to determine the:
  • Worker compensation rate in effect for Washington, when the state is the business location of the worker's primary position.
  • Job profile associated with the job code assigned by WA L&I.
When you don't use an override, Workday uses the default tax rate listed on the
View Payroll Tax/Allowance Data
 report.
  1. Access the
    Edit Company State and Local US Tax Reporting
     task.
  2. Complete the
    Other
     grid on the
    State
     tab:
    Field
    Description
    Tax
    Select 1 or more of these workers compensation tax deductions, if applicable.
    Employee Components:
    • WA: Washington Medical Aid Fund (Effective Jan 2017)
    • WA: Washington Stay at Work Program
    • WA: Washington Supplementation
      Pension Fund
    Employer Components:
    • WA: Washington Industrial Insurance (Accident) Fund (ER)
    • WA: Washington Medical Aid Fund (ER) (Effective Jan 2017)
    • WA: Washington Stay at Work Program (ER)
    • WA: Washington Supplemental Pension Fund (ER)
    You can only override the pension fund rate on the
    State
     tab.
    Use Tax Override Rate
    Select the check box.
    Tax Override Rate
    Enter the override rate for Washington State as a percentage. When you don’t enter a tax override rate, Workday uses the default rate for the state. Although the override tax rate is an hourly rate, enter it as a percentage. Workday doesn't calculate the override rate as a flat figure. Example: Enter 1.39 if the rate is 0.0139 per hour.
  3. Complete the
    Workers Compensation Rate
     tab:
    Field
    Description
    Start Date
    When you're entering a tax for the first time, enter the
    Start Date
    .
    When you're changing tax information, Workday recommends that you enter an
    End Date
    , then add a row with a new
    Start Date
    .
    Tax
    Select 1 or more of these workers compensation tax deductions, if applicable.
    Employee Components:
    • WA: Washington Medical Aid Fund (Effective Jan 2017)
    • WA: Washington Stay at Work Program
    Employer Components:
    • WA: Washington Industrial Insurance (Accident) Fund (ER)
    • WA: Washington Medical Aid Fund (ER) (Effective Jan 2017)
    • WA: Washington Stay at Work Program (ER)
    When you enter an override rate on the
    Workers Compensation Rate
     tab for a specific compensation code, Workday prioritizes that rate instead of the rate you enter on the
    State
     tab. Example: On the
    State
     tab, you set up a tax override rate. On the
    Workers Compensation Rate
     tab, you set an override rate for compensation code
    0040 - Vineyards (United States of America)
    . Workday only uses the workers compensation override rate for workers that have the 0040 workers compensation code and uses the tax override rate you set on the
    State
     tab for all other workers.
  4. Click
    OK
    .