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Administrator Guide
Last Updated: 2025-02-21
Steps: Track Workers Compensation (USA)

Steps: Track Workers Compensation (USA)

Set up workers compensation.
You can set up Workday Payroll to track unemployment data for employees whose primary work state is Washington or Wyoming.
Workday tracks the workers compensation code on employee job profiles for quarterly unemployment reporting. Payroll for the U.S. doesn't support tracking workers compensation codes by the location of a worker's payroll processing position.
When you don't configure workers compensation rates at the company level, Workday uses the preset rate for the payroll tax authority.
  1. Access the
    Edit Company State and Local US Tax Reporting
     task.
    As you complete the
    Other
     section of the
    State
     tab, consider:
    Option Description
    Start Date
    When you're entering a tax for the first time, enter a
    Start Date
    .
    End Date
    When you're changing tax information, Workday recommends that you enter an
    End Date
     to the existing row. You can then add a row with a new
    Start Date
     and change data as needed.
    Tax
    Select the workers compensation tax. For Washington, you can also:
    1. Select
      Use Tax Override Rate
      .
    2. Enter the
      Tax Override Rate
      . Although the tax rate is an hourly rate, enter it here as a percentage. Example: If the rate is 1.39 per hour, enter 139%.
    As you complete the
    Workers Compensation Rate
     tab, consider:
    Option Description
    Start Date
    Enter a date at the beginning of the:
    • Year
    • Quarter
    End Date
    Enter a date at the end of the:
    • Year
    • Quarter
    Rate
    Enter unique rates for each workers compensation code. The rate you enter on this tab overrides the rate on the
    State
     tab.
    Security:
    Set Up: Payroll - Company Specific (Taxes) - USA
     domain in USA Payroll functional area.
  2. Access the
    Maintain Payroll Reporting Codes for Worker
     task.
    As you complete the
    Payroll Reporting Code Description
     field, consider:
    Option Description
    Washington
    Indicate whether to report your corporate officers.
    Wyoming
    Assign a class code indicator to employees who are subject to the classifications:
    • Corporate officer
    • Government
    • Inmate
    • Job training
    • School to work
    • Volunteer
    • Welfare
    For each corporate office employee, assign the:
    • C- Corporate Officer (Wyoming Class Code Indicator) class
       class code indicator
    • Appropriate Wyoming corporate officer type
    Configure the
    Maintain Payroll Reporting Codes for Worker
     business process and security policy in the USA Payroll functional area.
Workday applies the rates in this order:
  1. Override rate for the workers compensation code on the
    Workers Compensation Rate
     tab.
  2. State override rate on the
    State
     tab.
  3. Preset rate for the payroll tax authority. You can view the rate using the
    View Payroll Tax/Allowance Data
     report.
Review these reports:
Report
Description
View Workers Compensation Rates
Verify that you entered the correct rates.
You can filter the report on:
  • Company
  • Active as of Date
     or
    Active Through Date
  • Region(s)
Audit - Workers Compensation Code In Use with No Rate
Locate missing rates.
Tax Filing Quarterly Data for Workers
Verify the rates by position.
  • For Washington, the
    Workers Comp by Position
     tab displays only when there are workers to report. You can also view workers on the
    Additional Data
     tab.
  • For Wyoming, select the
    Include Additional Data
     check box to view the
    WC Code
     column.
You can also check rates using the
Get Quarterly Worker Tax Filing Data
 web service.