Automated Wage Statement System for Jurisdiction-Specific Compliance
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The determination of workers' compensation benefits based on past wages is challenging due to variations in rules and regulations across jurisdictions, leading to inaccuracies and inconsistencies, which can result in penalties for insurance companies.
Innovation Solution
A system that generates electronic wage statement files through a web portal, automatically populating pay period dates and calculating wage values based on jurisdiction-specific rules, using third-party data and machine learning to ensure accuracy and consistency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual review of wage information is performed by claim handlers, then flexibility in handling complex wage scenarios is maintained, but accuracy and consistency of benefit determination deteriorates
Solution Approach 1:
The patent replaces manual mechanical review processes with an automated computer system that uses algorithms to calculate wage statements. The system automatically processes wage data, applies jurisdiction-specific rules, and generates benefit determinations without manual intervention, thereby improving accuracy and consistency while reducing the complexity burden on claim handlers.
Solution Approach 2:
The system dynamically adjusts calculation parameters based on jurisdiction-specific rules and wage scenario characteristics. By automatically selecting and applying the appropriate calculation parameters from a rule base, the system maintains high accuracy across different jurisdictions without requiring manual reconfiguration, thus resolving the contradiction between precision and complexity.
2Measurement precision
If separate application programs are used for different jurisdictions, then accuracy of jurisdiction-specific calculations is improved, but device complexity and storage requirements worsen
Solution Approach 1:
The patent implements a single universal application program that can handle wage calculations for multiple jurisdictions. The system uses a rule base that can be configured to reflect different jurisdiction-specific rules, allowing one program to perform the work of multiple separate applications. This maintains calculation accuracy while significantly reducing device complexity and storage requirements.
Solution Approach 2:
The system dynamically configures its calculation rules based on the selected jurisdiction. Rather than having static separate programs for each jurisdiction, the single application programmatically adapts its behavior by loading different rule sets from the rule base, enabling it to accurately calculate wages for any jurisdiction without requiring multiple permanent applications.
3Measurement precision
If extensive storage and transmission resources are allocated for jurisdiction-specific programs, then calculation accuracy is improved, but computational burden and resource consumption worsen
Solution Approach 1:
The patent extracts jurisdiction-specific calculation rules from large, resource-intensive application programs and places them in a compact rule base. This separates the universal calculation engine from jurisdiction-specific logic, allowing the system to load only the necessary rules for the current jurisdiction into memory. This reduces computational resource consumption while maintaining high calculation accuracy.
Solution Approach 2:
The system loads only the partial rule set needed for the current jurisdiction rather than loading entire jurisdiction-specific programs. This partial action approach minimizes memory usage and computational overhead while still providing accurate calculations for the required jurisdiction, resolving the contradiction between accuracy and resource consumption.
4Productivity
If automated wage statement generation is implemented, then productivity and consistency are improved, but measurement precision of complex wage scenarios deteriorates
Solution Approach 1:
The system incorporates feedback mechanisms that allow claim handlers to review and verify automated wage statement calculations. The interface enables manual verification of complex scenarios, and the system can adjust its calculations based on feedback. This feedback loop maintains high measurement precision for complex wage scenarios while preserving the productivity benefits of automated generation.
Solution Approach 2:
The system performs preliminary automated calculations and rule applications, then presents the results for review before finalization. This preliminary action allows the system to handle routine calculations automatically for high productivity, while providing a review step that ensures measurement precision for complex scenarios before the final wage statement is generated.
Data Source
AI summary
According to some embodiments, an input device may receive wage statement information via a web portal, including jurisdiction information associated with an injury. A computer system may then ingest third-party data associated with an insured. An indication of a pay period frequency may be received from the insured along with an indication of an initial pay period begin date via the web portal. A series of pay period begin date and pay period end date fields may then be automatically pre-populated based on the jurisdiction, the third-party data, the pay period frequency, and initial pay period begin date. Wage values associated with a plurality of the pay period begin date and pay period end date fields may be received from the insured, and an electronic wage statement file may be generated based on the received wage values.