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Workers' Compensation for subcontractors

Charging for Workers' Compensation insurance on invoices

About setting up accounts for posting payable invoices

Setting up Workers' Compensation rates for payable invoices

Some states do not require subcontractors to carry Workers’ Compensation insurance. In these states, the subcontractors use the general contractor’s insurance policy for the duration of the job, and the general contractor deducts the cost of coverage from payments to the subcontractor. Check with your state for compliance requirements as the laws vary in each state.

Sage 100 Contractor uses the Workers’ Compensation account indicated on the Payables tab in the General Ledger Setup window to post payable invoice transactions.

To set up a Workers’ Compensation rate for payable invoices:

  1. Open 4-4 Vendors (Accounts Payable).
  2. Using the data control, select the vendor.
  3. Click the Invoice Defaults tab.
  4. In the Work Comp Rate box, enter the rate at which you are charging the subcontractor.
  5. Click File > Save.
  6. Open 1-8 General Ledger Setup.
  7. On the Payables tab, enter the ledger account to which you are posting the charge to subcontractors in the Workers’ Compensation box.
  8. Click File > Save.

Tip: The credit does not appear on the Workers’ Compensation report, which only uses data from payroll records. To track and report the costs, create a separate Workers’ Compensation ledger account.