FAQ: What are "Covered Earnings" on the Worker's Compensation Rate per $100 Report?
Covered earnings, and how they differ from Total Earnings.
If the worker's compensation method is Straight time equivalent, the covered earnings are the regular and straight time equivalent of the employee wages.
Example: John Doe worked 43 hours this week.
40 Regular hours @ $25/hour $1000
2 Overtime hours @ $37.50/hour 75
1 Double time hours @ $50/hour 50
Total Earnings $1125
Covered Earnings:
43 hours @ $25/hour $1075
(this amount does not include the premium value of overtime and double time earnings)
Covered Earnings may also include any other pay type earnings NOT specifically excluded in the for this state.
The Total Earnings column on this report does not necessarily equal Regular Earnings plus Overtime Earnings. Total Earnings includes other pay types, such as Vacation, Sick, Holiday pay, and so on, which may not be subject to worker's compensation tax.
To reconcile the difference:
- Check the worker's compensation method in the Worker's Compensation Code Maintenance screen in the Method field. If it's Straight time equivalent, review the information above.
- If the method is Total earnings, or the total earnings source is unknown, print the employee's Wage and Tax History Report for the same date range, and the Add-On History Report or the Deduction History Report for the same date range.
