1. Gather a list of any employees who are exempt from Workers' Compensation coverage

   Employment Hero cannot identify these individuals, so it will be your responsibility to identify them. If you are unsure if an employee is exempt, consult your legal team or the workers' Compensation body in your province to determine which employees may be exempt.
2. Gather your Workers' Compensation documentation. You will need to:
   • Identify all provinces in which your business has a workers' compensation obligation
   • For each province, identify all rates and rate classes your business is subject to
   • For each province, identify which employees are covered under which rate in the province

3. Review what earnings Employment Hero considers Assessable in your province
   As part of the setup for this feature, we've defined every default earning type in Employment Hero Payroll as either assessable (subject to workers' compensation premiums) or not assessable (not subject to workers' compensation premiums). Click here to view our handy chart.

   Employment Hero will use the province selected to apply the maximum assessable earnings threshold set by the jurisdiction.

4. Review any Custom Earnings or Benefits

   If you have set up custom earnings or benefits, please be aware of the following default settings:

   • If the benefit is set to be subject to Income Tax: 
     Employment Hero will define all custom benefits as assessable (subject to workers' compensation premiums) if the benefit is already set to be subject to Income Tax.

   • If the benefit is not set to be subject to Income Tax:

     All benefits not set to be subject to Income Tax will be defined as not assessable (not subject to workers' compensation premiums).

   Important Note

   If the default settings are incorrect for your specific custom earnings or benefits, you must contact us before running your first payroll to let us know how to update your custom benefits.

These steps are in the recommended order, but you can do them in whatever order suits you best.

1. Mark all exempt employees as exempt
   1. In People, click on Employee List, then select the exempt employee.
   2. In their Employee Profile, scroll down to the Pay & compensation section and click on the Taxes, credits & exemptions tab.
   3. Scroll down to the Taxes & exemptions section, click the pencil icon to edit the fields and toggle on the workers' compensation exempt field.
   4. Click Save.
   5. Repeat this process for each exempt employee

2. Create a Workers' Compensation rate for every rate & province combination your business is subject to and that you identified in "Step one - Before opening Employment Hero"

   1. In Settings, navigate to the Payroll card and click on Workers' Compensation.
   2. Click on the + Create rate button.
   3. Enter the Rate Name, Applicable year, Province, and Rate.
      • The rate name is a free-text field; you can name the rate whatever you choose, and can edit this field later
      • The applicable year. This field is NOT editable later
      • The applicable province. This field is NOT editable later
      • The rate of assessable earnings for the relevant province. This field is NOT editable later
   4. When you're ready, click Create rate to save the rate in Employment Hero.

   How to enter your rates into Employment Hero

   Employment Hero requires the rate to be entered as a numeric value. For detailed instructions, see How to Create a workers' Compensation Rate.

3. Assign employees in Employment Hero to the workers' Compensation Rate they are subject to
   1. Click + Assign Employees.
      You can select all employees or click on Selected employees and use the search bar to find the specific employees you need.
   2. The chosen employees will now be assigned to the workers' Compensation Rate in Employment Hero
   3. Repeat this process for any additional rates or employees until all assignments have been completed
   4. If you created the rate and didn't assign employees at that time, you can add employees to the rate you created in Settings > Payroll card > Workers compensation > click the three dots on the rate line and click edit > follow steps 1-3 outlined above

When you have reviewed your setup and are satisfied, head to Payroll to complete your first pay run and Employment Hero will automatically run a retroactive workers' Compensation calculation that you will be able to view in your Payroll Reports.

1. In Reporting, head to Payroll
2. Select the Workers' Compensation Report to review the results of your retroactive calculation