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    Set up and edit Workers' Compensation

    Article ID: 1000753

    Overview

    If you have more than one Workers Compensation provider, you can only set up QuickBooks to handle one. You must calculate Workers Compensation for your other providers manually.

    Details

    Workers Compensation Setup or Feature in QuickBooks is available only to Enhanced and Assisted Payroll subscribers.

    Choose Edit > Preferences.

    Select Payroll and Employees on the left, and then click the Company Preferences tab.

    Click the Workers Compensation button.

    If you want to track Workers Compensation, select the Track Workers Comp box. (Alternately, if you want to disable Workers Compensation, click to clear the box.)

    If you want to track Workers Compensation, select the Track Workers Comp box. (Alternately, if you want to disable Workers Compensation, click to clear the box.)

    Select:
    • Display message to assign codes - to display Workers' Comp messaging in QuickBoooks
    • Exclude overtime premium from Workers Comp calculation - so this item will show up on your report as a separate item.
    QuickBooks does not track annual limits for Workers Compensation calculations. You must track these manually.

    Click OK.

    Choose Employees > Workers Compensation > Manually Track Existing Workers' Comp Policy.

    Complete the wizard to set up Workers Compensation. Different employees might have different Workers Comp codes. This wizard allows you to set up a code for each employee.

    If you want to separate overtime premiums from standard premiums, in the Workers Compensation Setup wizard select:

    1. On the Overtime Payments window: Yes.

    2. On the Overtime Premiums and Workers Compensation Calculations window: No, I exclude overtime premiums from my calculations. If you select this option to exclude the premium for overtime, this item will show up on your report as a separate item

    Click Employees on the top menu bar.

    Move your pointer over Workers Compensation and select Workers Comp List.

    To add a new or edit an existing code, click the Workers Comp Code button at the bottom left, and then select New or Edit Workers Comp Code.

    To edit the Experience Modification factor, click the Experience Modification button on the bottom and select Edit.

    • If the experience modification factor is 1.25, then the rate should be 125%.This is a 25% increase in the Workers Compensation premium. If the factor is .81, then the rate should be 81%. This is a 19% decrease in the Workers Compensation premium.
    • Entering a date in the past for the Experience Modification has no effect on payroll dated earlier than the current date.
    • QuickBooks cannot track more than one experience modification factor at a time.

    When you are finished, close the Workers Comp Code List window.

    Intuit does not have any information on codes for each state. This information can be obtained from your Workers Comp provider.
    QuickBooks only allows you to assign 1 workers compensation code to each employee, which typically is their main line of work. If an employee needs an additional Workers Compensation code assigned to hours worked, you can add the code manually to the paycheck when you create it.

    Click the Lists drop-down menu, select Payroll Item List.

    Double-click on the Workers Compensation item. This will bring up an Edit Payroll Item window.

    Click Next.

    To ensure that Workers Compensation will track by class select Track Expenses By Job.

    Click Next and then Finish.

    2 comments

    Duane Jager2/4/2013

    I have QuickBooks 2011 and it doesn't have workers comp set up option in the Employee tab. Am I missing something?

    Reply

    Jo Ann2/5/2013

    Hi Duane,

    I am an Intuit employee and noticed your comment. You are using the right article to resolve this issue and it sounds like one of two things is happening. Either:

    1) You need to edit your preferences in QuickBooks. I have updated the article to show these steps more clearly in the beginning.

    or

    2) You do not have Enhanced or Assisted Payroll and need to upgrade in order to have Workers Compensation capabilities in QuickBooks. You can use the article "Enter or edit your payroll service key/disk delivery key" http://payroll.intuit.com/support/kb/1000077.html to check which Service you have.

    I hope this helps. Thank you for posting a comment.

    Comments can not be added at this time.

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