Issue/Symptom/Question

We are looking to exclude Premium wages earned in California from being taxed for Workers Comp. How do we do this?

Applies To

How to exclude Premium wages from Workers Compensation tax?

Is it possible to exclude Premium wages from Workers Compensation tax?

Workers Compensation WC

State Codes Screen
Payroll> Setup> Taxes> State Codes

Resolution/Fix/Answer

To exclude premium wages from Workers Compensation calculation:

• Navigate to the State Codes screen
• Query back the state for which you want Premium Wages excluded from WC
• Create a new entry in the "State Workers Compensation Earnings Limits" block (do this by clicking on the "Effective Date" field and hitting the down arrow on your keyboard).
• For the new entry switch the "Include Prem Pay in Cal (Y/N)" Flag to N