Workers' Compensation Overview: Plans, Codes and Rate Tables in CoAd

Workers' compensation is insurance that provides benefits to employees who experience a job-related injury or illness. In CoAd it is managed through three components — a plan, a code and a rate table — and premiums are calculated from employee earnings.

The three components

How workers' compensation works

• Employees are assigned workers' compensation codes through their positions (or jobs, if configured).
• The system determines the correct rate based on the employee's work location and the assigned code and plan.
• Premiums are calculated automatically based on employee earnings.

How premiums are calculated

Workers' compensation premiums are calculated outside of payroll using this formula:

Premium = Rate × (Earnings / 100)

Example: if an employee earns $38,000 and the rate is 1.08:

(38,000 / 100) × 1.08 = $410.80

Reporting

Use these standard reports to review workers' compensation data:

• Workers Compensation
• Workers Compensation Per $100 of Payroll

You can also use configurable reports (like General Ledger or Payroll reports) for deeper analysis.

Setting up workers' compensation

Basic setup steps:

1. Add the Workers' Compensation (WrkrComp) earning code to applicable employees.
2. Add a Workers' Compensation Plan (by state and carrier).
3. Add Workers' Compensation Codes to your company.
4. Add a Rate Table to the plan.
5. Assign codes to positions (or jobs, if applicable).

Manage workers' compensation plans

Add a plan

Use when you start coverage in a new state, or you change insurance carriers.

1. From the navigation menu, click More.
2. From the Payroll menu, select Workers' Comp.
3. Enter the start date, state, carrier and plan name.
4. Click Submit.

Edit a plan

Use when updating plan details (not rates), or extending or correcting plan information.

Note: changing the state requires creating a new plan, and changing the carrier requires a new plan.

Remove a plan

• End Date — use when the plan has expired.
• Undo — use if the plan was added incorrectly (removes all related data).

Important: Undo cannot be reversed.

Manage rate tables

Add a rate table

Use when rates change, or a new policy period begins.

1. From the navigation menu, click More.
2. From the Payroll menu, select Workers' Comp.
3. Select a plan and click Rates.
4. Click Add Rate Table.
5. Enter the effective date.
6. Enter rates for each code.
7. Click Submit.

Important: rates are entered per $100 of payroll. Example: enter 0.0125 for a $1.25 rate.

Edit a rate table

Use this to correct rate errors. Updates automatically recalculate premiums for that period.

Manage workers' compensation codes

Add a code

1. From the navigation menu, click More.
2. From the Payroll menu, select Workers' Comp.
3. Click Add under Company Workers Comp Codes.
4. Select the profile (e.g., NCCI or state-specific) and the code.
5. Click Submit.

Delete a code

Deleting a code is only possible if the code is not assigned to any position.

Additional notes

• Codes are typically based on NCCI standards or state-specific lists.
• Multiple states may require multiple plans and codes.
• Always ensure positions are assigned the correct code for accurate premiums.

Next steps

• Run workers' compensation reports to review premiums.
• Verify all positions are assigned correct codes.
• Update rate tables when policies or rates change.

Frequently asked questions

What is workers' compensation insurance?

Workers' compensation is insurance that provides benefits to employees who experience a job-related injury or illness.

How are workers' compensation premiums calculated?

Premiums are calculated outside of payroll using the formula Premium = Rate x (Earnings / 100). For example, an employee who earns $38,000 at a rate of 1.08 produces a premium of $410.80.

What are the three parts of a workers' compensation setup?

Workers' compensation is managed through a Plan, which is tied to a state and insurance carrier; a Code, which is a classification that defines the type of work performed; and a Rate Table, which contains rates for each code over a specific time period.

How are workers' compensation rates entered?

Rates are entered per $100 of payroll, so a $1.25 rate is entered as 0.0125. Editing a rate table automatically recalculates premiums for that period.

When do I need to add a new workers' compensation plan?

Add a new plan when you start coverage in a new state or change insurance carriers. An existing plan's state or carrier cannot be edited; either change requires creating a new plan.