Procedure documentationDefining Workers' Compensation Classification Codes

Prerequisites

SAP recommends that you consider how Workers’ Compensation codes are assigned to your company before you set up Jobs, Positions, and Organizational Units.

For example, if you have 2,000 Positions and only a few Jobs, assigning WC codes by Position could mean assigning WC codes to 2,000 Positions manually, whereas assigning WC codes by Job would involve considerably less effort.

Procedure

Define the combination(s) of State, Workers’ Compensation codes, and Premium Calculation methods that apply to your organization.

To do so, maintain view V_T5UWC in Customizing for Personnel Administration under Start of the navigation path Organizational Data Next navigation step Workers' Compensation Next navigation step Define workers' compensation classification codes End of the navigation path, as follows:

  1. Enter the state-dependent Workers’ Compensation codes for your company.

    These codes represent the classifications defined by the respective state Workers’ Compensation board. You can assign these codes to Organizational Units, Jobs or specific Positions within your organization.

  2. Define the method to be used for calculating the Workers’ Compensation premium.

    The report RPLWCOU0 can use either of two possible methods when calculating the Workers’ Compensation (WC) premium. These two options are based on the main premium calculation methods used by insurance providers:

    • Experience rate method: The premium is calculated based on the WC wage multiplied by the WC experience rate. (Premium = WC wage x WC experience rate)

    • Manual rate method: The premium is calculated based on the WC wage divided by 100, multiplied by the WC manual rate and then multiplied by the WC experience modifier. (Premium = WC wage/100 x WC manual rate x WC experience modifier)