Record Workers Compensation or WorkCover in QuickBooks Payroll

Learn how to record a Workers Compensation (WorkCover) arrangement for an employee in QuickBooks Online Payroll powered by Employment Hero.

Step 1: Create a Workers Compensation pay category

1. Go to Payroll, then select Payroll Settings.
2. Select Pay Categories under the Pay Run Settings column.
3. Select Add, then name the pay category Workers Compensation or WorkCover and select Save.
4. Review if you need to pay super on the workers compensation payment earnings and adjust the Super Rate accordingly. This is determined by whether your employee has returned to work or not. View this article from the ATO for more information.
5. Select Save.

Step 2: Set up the affected employee

1. Go to Payroll, then select the name of the employee to open up their settings.
2. Select Pay Rates from the left menu.
3. Find their usual pay category (e.g. Permanent Ordinary Hours), and untick the Show in Pay Run box for that category.
4. Find the Workers Compensation pay category and enter the Hourly Rate and Number of Hours you'll be paying in a pay run, then tick the Show in Pay Run box for that category.
5. Select Save.

From now on, this employee will show up in each pay run with a Workers Compensation earnings line.

Step 3: Revert pay category changes once the Workers Compensation period is over

1. Go to Payroll, then select the name of the employee to open up their settings.
2. Select Pay Rates from the left menu.
3. Find the Workers Compensation pay category and untick the Show in Pay Run box for that category.
4. Find their usual pay category and tick the Show in Pay Run box for that category.
5. Select Save.

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