Home > workers compensation compliance > Why Can’t Accounting Programs Integrate NCCI Risk Classification Compliance Coding?

Why Can’t Accounting Programs Integrate NCCI Risk Classification Compliance Coding?

First, you are going to say it’s already being used to do the quarterly reports. No, it is not. Compliance coding is having ‘triggers’ programmed into the risk classification accounting programs. This ensures companies are reporting accurately in any industry.

Like any fraud control, it attests to the accuracy of the originating data at the entry point whether it be time clocks, time sheets, hand held devices, or human data entry.

A lot of accounting programs have Add-ons that export to quarterly reports. Ever heard of GIGO? Garbage in/garbage out. These programs fail the compliance test. For example, Johnny can’t work in the office or maintenance yard and go out into the filed the same day. When audited, all these hours will be captured in the highest risk class.

Ever herald of Avalara in Seattle on Bainbridge Island? They do this for sales and use taxes all over America. We can do that for workers’ compensation, unemployment insurance taxes, and all the varied benefit funds in each State, too. Why pay for annual audits when you can do them yourself.

Attestation Software can has had Pay-as-U-go programs in place for several years. They have given away over 500 iPhone apps that export this work via APIs and emails to whoever needs this person, the risk classification, and times on the job. It works great for piece work, too.


Now, back to EMPC at TIME Integrator

When adding employee hours, the Timesheets are used to verify and record the hours in a 4-step process to secure accuracy.

Step 1 is to verify the Pay Period, Quarter, Pay Category, Employee, and Classification. If this employee buys materials or is paid a bonus, that information needs to be captured using the drop down menu so that these dollars are not considered wages. Remember, you may have more than one Classification for an employee such as warehouseman and driver, or remodeler and concrete work.

 Step 2 is to enter the hours and verify the written signature. These hours are propagated into the reports from this page. The Check box is to do the math. Then go to Step 3 by clicking the Save & Next box. If you are reporting salary employees, you still have to use an hourly wage in the program for compliance purposes. If the hours vary each month, divide the employee’s wages by the hours worked that month for the Rate of Pay using Combine Employee, Class & Rate. Otherwise, use the same hours for this salary employee each pay period.

 Step 3 is an open format to record regular and overtime hours that end up on the quarterly reports. Sick or medical, Holiday, and Vacation hours are recorded here. Many companies have their own method of paying these types of hours. This is where bookkeepers and accountants capture these hours to enter into their payroll programs.

 The Save & Next box leads you to Step 4 which is a summary of your input for one last verification. Use the Refresh, Back, and Retry buttons to make any corrections. Reimbursements and bonuses are handled independently, but need to be recorded and signed for audit purposes.

The program formulas mathematically calculate workers’ compensation, unemployment insurance, and benefit funds for each State. All you’re quarterly reporting just got done. Next week, we will see what automatic quarterly reports have been created.

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