Hi there, CL. To ensure we provide the right steps, are you recording a reimbursement for wages paid to an employee or a premium reimbursement from your insurer?
For general insurance reimbursement, the best practice is to record it as a Bank Deposit. Go to + Create, select Bank Deposit, and choose the bank account where you deposited the funds. In the Add funds to this deposit section, categorize the amount to your workers’ comp Insurance expense account. Using the expense account creates a contra-expense, ensuring your Profit & Loss shows your true net cost.
For wage reimbursements, if the insurer is paying you back for wages you've already paid an employee, you'll need to categorize this to Other Income account. This keeps your actual insurance premium expenses separate from payroll-related recoveries.
It’s also worth noting that if this refund relates to a premium paid in a prior financial year, or if you're unsure which GST code to apply for your Business Activity Statement (BAS), we highly recommend checking with your accountant or BAS agent. If you need a hand finding one, you can browse our Resource Center.
I’ll keep an eye on this thread if you have any additional questions or need further assistance.
