|Note: You must set up the manual Workers Compensation feature using the Workers Compensation Setup Wizard before you begin paying employees or your reports might be incorrect or incomplete.|
- Go to the Edit menu, then select Preferences.
- Select Payroll and Employees on the left, then go to the Company Preferences tab.
- Select Workers Compensation.
- Put a check in the Track Workers Comp checkbox. Also put checks to the following checkboxes:
- Display message to assign codes. - to display the Workers Comp messaging in QuickBooks.
- Exclude overtime premium from Workers Comp calculation. - to show overtime premium as a separate item on your report.
- Select OK, then OK.
- Go to the Employees menu, then select Workers Compensation > Manually Track Existing Workers’ Comp Policy. Complete the Workers Compensation Setup Wizard. Note that this allows you to set up a code for each employee.
Premiums accrue as you write paychecks
Each time you write a paycheck, QuickBooks accrues Workers' Compensation premiums for each Earnings item that has a Workers Compensation code assigned to it. If you assigned a default code to an employee in the Workers Compensation setup, QuickBooks automatically assigns that code to the employee's Earnings items on their paychecks.
I just started using the Workers Compensation feature in the middle of the insurance year
The manual Workers Compensation feature can only track your premiums from the time you begin using the feature. There is no way to enter year-to-date information for your Workers' Compensation premiums.
If you start using the feature in the middle of your insurance year, you'll have to combine the information QuickBooks tracks for you with the information you tracked outside of QuickBooks before you started using the feature. That way, you'll get the full picture of your Workers Compensation obligations for your insurance year.
Let's say your Workers Compensation insurance policy begins on August 1 and ends on July 31. Now, let's say you begin using the manual Workers Compensation feature in QuickBooks on November 1.
At the end of the year, on July 31, when you need to assemble a complete picture of your accrued premiums for the year, you'll need to run a Workers Compensation Summary report for November 1 to July 31 and combine that data with the information you tracked manually from August 1 to October 31.