01-P-036 Workers Compensation Insurance Rates
|February 27, 2001
|Workers Compensation Insurance Rates
|Pay Period Beginning March 4, 2001 and Ending March 17, 2001 paid March 30, 2001
|Change from a uniform flat rate to an agency experience rate for Workers Compensation Insurance.
Senate Bill 219 amended K.S.A. 44-575 to establish Workers Compensation Insurance (WCI) rates for state agencies based on the accidental injury and occupational disease experience of a state agency rather than the current practice of a uniform rate for all state agencies. The establishment of individual state agency rates will become effective fiscal year 2002. For fiscal year 2002, the state agency rate will be calculated by using one-half of the old uniform rate and one-half of the agency experience rate. For fiscal year 2003, the rate will be the experience rate based on a three year rolling average.
New Deduction Codes - With the establishment of individual WCI rates for each state agency, the deduction codes in Attachment A have been added to SHARP.
Conversion to New Codes - The conversion to the new WCI deduction codes will occur in SHARP on Monday, March 12, 2001 with an effective date of March 4, 2001. Please note that this is only a change to the new codes, the new rates are not effective until July 1, 2001. The conversion process will set-up the new WCI deduction codes for all active employees in SHARP where the employee record number is equal to the benefit record number. Please note that if an employee is working concurrent positions in two different agencies and both employee record numbers have the the same benefit record number, the employee will only be enrolled in one agency specific WCI deduction code (the agency where the employee record number equals the benefit record number). For example, employee A is working concurrently for agencies 173 and 276. The employee record number for agency 173 is '0' and the employee record number for agency 276 is '1'. Both employee record numbers are tied to benefit record number '0'. In this case, the employee will be set up with the deduction code of WCI173. The employee will receive one paycheck for all wages (from both agency 173 and 276) and WCI for all wages will be calculated using the rate for agency 173. The WCI charged to each agency will be prorated by the employee's agency wage to employee's total gross wages. For example, if the employee in the above example had $1500.00 of total wages for the period ($900.00 agency 173 and $600.00 agency 276) and WCI rate charge of $14.00, $8.40 will be charged to agency 173 (60%) and $5.60 will be charged to agency 276 (40%).
Future Maintenance - The SHARP batch process which runs every night to enroll new hires and re-hires into the State Leave and WCI with the proper rate, has been modified to review all job actions to determine if the agency has enrolled the employee in the proper WCI code. SHARP will verify that the employee record number is equal to the employee benefit number in determining if the correct WCI code was used. If the agency has not enrolled the employee into the proper WCI code, the batch process to enroll the employee into the proper WCI code will insert a new row with the correct WCI code for the employee with an effective date equal to the job action necessitating the change (hire, rehire, transfer, ect.).
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes to the SHARP payroll system. Regent's institutions are responsible for ensuring the new earnings codes are available on their individual systems.
Attachment: WCI Codes By Agency Number