iv. Calculating Workers' Compensation Assessments

Read the background information and question carefully. Enter your best response to the memo question/query.

You are the Payroll Administrator in a multi-jurisdictional organization that has employees across Canada. In addition to the regular financial aspects of the audit this year, the auditors for your organization are looking at the processes in place in certain areas of the Payroll Department. To speed up the process, the Payroll Manager is preparing documentation for the auditors to follow that outline various processes. Please prepare a memo for her outlining the general procedures for calculating the Workers Compensation assessment in all jurisdictions to be included in the documentation for the auditors.

Memo guide Discuss/explain the formula to calculate the Workers Compensation Assessment

1) State the formula to calculate the Workers Compensation Assessment/Premium.

2) Explain how to calculate the Assessable Payroll or the Total Assessable Earnings

3) Determination of Premium Rate - rate per $100 of Assessable earnings

Reference Payroll 1 Workers Compensation handout and notes

Note: This memo contributes a maximum of 4.0 % to the final course grade.