About Workers' Compensation codes

Assigning Workers’ Compensation codes to cost codes provides the correct compensation code based on the type of work performed during timecard entry. You may need to create additional cost codes for the combination of cost codes and Workers’ Compensation codes to work correctly.

In a split rate system for Workers’ Compensation, a category of work uses two different rates. Some states, such as California, use a two-tiered system of rates based on employee pay. The wages an employee earns determines the rate at which the insurance company computes Workers’ Compensation.

For split rates, Sage 100 Contractor uses a wage maximum to determine which code to use. For wages that are less than or equal to the wage maximum, Sage 100 Contractor assigns the first compensation code to the timecard. When employee wages exceed the wage maximum, Sage 100 Contractor assigns the second compensation code.