Washington State Workers' Compensation

Washington calculates Workers’ Compensation differently from most states.

Important! Set up 5-3-2 Workers’ Compensation with Employee and Employer Hourly rates. You do not need to use the column for Employer %.

Time cards must have hours on the grid even for the salaried employees because the calculations are set up on a per hour basis.

To set up payroll calculations for Washington State Workers’ Compensation:

  1. Open 5-3-1 Payroll Calculations.

  2. Set up the employee hourly Workers’ Compensation payroll calculation as follows:

    • Tax Type: 11-Workers’ Compensation
    • Calc Type: 1-Deduct from Employee
    • Calc Method: 8-Per Hour (all hours)
    • Based On: 0-None
    • Max Type: 0-None

  3. Set up the employer hourly Workers’ Compensation payroll calculation as follows:

    • Tax Type: 11-Workers’ Compensation
    • Calc Type: 3-Employer Cost
    • Calc Method: 8-Per Hour (all hours)
    • Based On: 0-None
    • Max Type: 0-None