Worker's Compensation

How do I set up and manage Workers' Compensation in BambooHR?

Purpose: This guide will explain how Payroll Admins with Run Payroll access and an assigned EIN can access, add, and manage Workers' Comp codes and rates within BambooHR settings. If you operate in Washington and use the WA L&I tax, specific instructions for how to manage that workers' comp tax type are also included in this guide. 

Table of Contents:

Workers' Compensation in Settings Overview

Workers’ Compensation (also called Workers’ Comp) is an employer-funded insurance that covers an employee’s injury or illness when the injury or illness is the direct result of performing their job duties. BambooHR offers payroll customers the ability to set up their workers’ comp codes and rates in the system to help them report on workers’ comp and estimate their premium payments.

Users with permissions for the Settings > Payroll section will have access to the Workers’ Comp section; however, only users with Run Payroll permissions for a specific payroll account (EIN-specific Payroll Access) will be able to view Workers’ Comp data and set up or manage it (add new or edit). 

To manage workers' comp, navigate to Settings > Payroll > Workers' Comp. Below is an overview of the features you will find on this page: 

  1. Add Workers' Comp: Click this button to add new workers' comp codes for your company. 
  2. Workers' Comp Table: This table will help you easily view previously added workers' comp codes. Including the code, the state, a description, the employee rate, and employer rate. 
  3. Showing For: If you have multiple EINs, this dropdown will display. Click the dropdown to choose which worker comp codes you would like to view for a specific company. 
  4. Looking for data?: Clicking this link will provide you with helpful workers' comp reporting resources at your fingertips. The following guides will be linked for quick access: 
    1. Payroll Reports in BambooHR
    2. Custom Pay Cycle Data Reports and File Feeds in BambooHR Payroll
  5. Show: You can filter the Workers' Comp table between active and inactive codes. If your company doesn't have any inactive codes, this dropdown won't appear. If only inactive codes exist and you filter by 'Active' codes, a message will appear in place of the table. You can either add a new code, or filter by inactive codes and reactivate them. 
What if it's my first time setting up workers' comp in BambooHR? 

If you haven't set up any workers' comp codes in BambooHR, your Workers' Comp Settings will display the following: 

You can start by clicking Add Workers' Comp (see below) or Learn More. If you click Learn More, you'll land on this help guide. Use the information below to help you accurately set up and manage your workers' comp codes. 

Workers' Comp Table

The Workers’ Comp table will appear as long as there are active codes and displays the following columns from the Add Workers' Comp setup: 

  • Code
  • State
  • Description: Descriptions too long to fit into the table view will be truncated. 
  • Employer Rate
  • Employee Rate

Each table column header can be sorted from ascending to descending and vice versa. Hover over a code on the table to reveal the Rate History and Pencil icon, where you can edit, view, and add new rates (see below). 

Rate History

Selecting the ‘Rate History’ icon opens the Rate History Modal. This modal displays the following: 

  1. Code, State, and Description for the rate history being viewed
  2. Rate history table including the Employer Rate, Employee Rate, Start Date, and End Date
  3. Pencil icon: Upon hovering a rate, the pencil icon will appear allowing you to edit individual rates and their effective dates. An error will occur if you try to select overlapping dates. If a current rate exists, it will be displayed for quick reference. Otherwise, the previous or new rate will be displayed. 
  4. Add Rate: the Add Rate modal will display if you would like to add a new rate to an existing state. This modal functions the same as if you were editing a rate.  

The Rate History won't be available if no rates exist for the workers’ comp codes, or if you only have codes in Washington state. Managing rate history and editing rates for Washington state (WA L&I) will remain in Settings > Payroll > Taxes > Edit WA L&I (see below). 

Update Workers' Comp modal

Clicking the pencil icon on the Workers' Comp Table opens the Update Workers’ Comp Modal where you can add new rates or correct the existing workers’ comp code and/or rate.

To update your data, you'll need to select one of two options before proceeding (Exception: If the Workers’ Comp Code does not have a rate, the ‘This is a new rate’ option is automatically selected and the ‘Add Rate’ Modal will appear): 

  1. This is a new rate: Choosing this option will add a new entry to prepare for upcoming changes and the new Add Rate modal will appear. 
  2. This is a correction: Choosing this option will update the existing record settings for the chosen workers' comp code/rate and the Edit Workers' Comp modal will display.

Add Workers' Comp

Clicking Add Workers’ Comp will display a modal that allows you to add new workers’ comp codes and the applicable rate. You will be able to add the following fields: 

  1. Workers' Comp Code (required): Enter the 4-digit code with no letters or special characters. If you have paid BambooHR Payroll to create a custom File Feed for your workers' comp data after each payroll, you must save a valid 4-digit code before proceeding. 
  2. State: Designate a state for this code so you can easily track and report your workers' comp data. The dropdown includes all 50 states, the District of Columbia (DC), and Puerto Rico. Keep in mind, if your company has codes in Washington State, you will manage those separately in Settings > Payroll > Taxes. 
  3. Description (required): Add a description to help you identify the type of code. There is a 50-character limit. 
  4. Set the Rate: Enter the employee and employer rates and the effective dates for the workers' comp code if applicable. This section will function the same as the Add Rate modal within Rate History. 
     

Assigning Workers' Comp Codes

Individual

Navigate to the employee's Job tab in BambooHR to assign the Workers’ Comp code after it has been added in Settings. The dropdown will also display the optional state designation if it exists.

In order to have the Worker's Comp Classification field show up on the employee profile, make sure the following items are completed.

  1. The employee needs to have an active Payroll-syncing pay schedule on the Compensation table on their Job tab. 
  2. The selected pay schedule must be associated with the correct EIN in BambooHR Payroll. 
  3. The EIN needs to have the workers' comp codes set up correctly. 

Bulk assign through Power Edit 

You can bulk assign workers' comp codes via BambooHR's Power Edit. Navigate to People > click the gear dropdown > Power Edit Employees > select your employees > select Workers' Comp Classification in the Choose Fields section. 

If you have multiple payroll accounts within BambooHR, Workers’ Comp codes will be separated into sections by payroll account number for you to choose from. If an employee moves from one payroll account to another and their current Workers’ Comp code is associated with another payroll account, their current selection will appear greyed out, and an error will appear if you try to save it with the invalid code.

Reporting Workers' Comp

The following information has been added to two Workers’ Comp-specific reports--the Worker’s Compensation Salary List report and the Worker’s Compensation Estimate report:

  • Worker Comp State: This state is chosen in settings when setting up the code. 
  • State Tax W/H In (State Tax Withholding): This is the state where the employee is being taxed based on the selection of their home or work location under the Pay Info > Taxes > State Tax Withholding section.
  • State UI In (State Unemployment Insurance): This reflects the state being used for State Unemployment Insurance-related taxes from the selection of home or work location under the Pay Info > Taxes > State Unemployment Insurance section.

These updates help in tracking and reporting Workers’ Comp data more effectively.

If you need to keep track of specific worker comp metrics not available in those reports, you have the option to create a custom report for an additional cost. 

What if I need to track Workers' Comp in the state of Washington?

Those who have employees working in the state of Washington may need to track worker's comp. If Washington Worker's Compensation is selected from the Tax Type dropdown in Settings > Payroll > Taxes, a section for WA-L&I will appear. Within this section new fields automatically display to add the class codes and rates. Rates added are for both the employee and the employer. If the employer covers the cost of the employee tax, the employer rate should adjust to include both, and the employee rate set to zero.

How do I make a change to my WA-L&I Tax?

Once you have created a WA-L&I tax, additional actions can be made similar to any taxes in BambooHR. The WA-L&I tax dropdown displays the following options: Update Codes & Rates, End on, Edit, and Remove. The only action that is different from other company taxes is Update Codes & Rates. End on, Edit, and Remove will function the same as outlined above.

Update codes & rates

When selecting the Update Codes & Rates option, the Codes and Rates page will display. You can deactivate a class code by unchecking the Active checkbox next to the class code. This page allows you to change the class code rates and set an effective date. You can view the Rate History which includes the history for active and inactive class codes. Rate History displays past rates and dates of changes. For a future rate added to a class code, an alert icon will display next to the Rate History link.

Once WA-L&I is set up in BambooHR, you will need to assign the worker comp code to the employee by adding it to their Job Info tab.