How do I record a insurance dividend check? This is from my workmans comp insurance.

Work comp insurance dividend check is an unusual combination of words from my experience.

I assume you received a check from the insurance company you pay to for work comp insurance.

"Dividend" confuses that assumption for me.   Do you know WHAT they are paying you for?

- Refund for overpayment?

- Adjustment following annual audit?

Work comp insurance companies typically estimate your premium based on info you provide and then audit at year end and adjust amount they charged you, which could give you refund.

Assuming that is the case, your entry should debit cash and credit work comp insurance expense.

Aloha,

My work comp insurance carrier distributes dividends to policyholders who have been insured for more than one year and who have demonstrated safety records that basically keep claims down they refer to this as their Dividend Distribution Plan. Thanks for your help.

I have received an adjustment following annual audit referred to as dividends.  I need to record it in QBO.  What are your suggestions for this?

Thank you.

Hello there, @KimbaDesgin.

To record an adjustment following an annual audit, I recommend seeking the assistance of a tax expert to make sure the balance sheets are accurate. Journal entry adjusts an account's total balance.

I've added these articles that can guide you about Journal entries in QuickBooks Online:

• Enter adjusting journal entries.
• Adjusting Journal Entries.
• Make and view adjusting journal entries

You can always visit our QuickBooks page for articles helpful in managing your account: QuickBooks Support.

Please let me know if you have additional queries. I'd be glad to help. Have a great day.

Hi Rubielyn,

I think you may have misunderstood my query.

I received a check representing an "adjustment following annual audit" referred to as dividends.  I need to record it in QBO.  What are your suggestions for this?

Hello, @KimbaDesgin.

To record your adjustment following an annual audit, you can follow the instructions above by creating a journal entry to record it in your QuickBooks Online. 

In the assurance of the accuracy of your books, I recommend reaching out to your accountant so you will be guided. 

I’ll be leaving you this link to help you if you have other issues or concerns. Help articles.

Feel welcome to reach out to me here if you have any other questions. Have yourself a great day!

I have the same question. However, I actually am referring to an annual "dividend check". We received 14% back for our safety record, in our state. Nothing to do with audits, or premiums. It is literally bonus income.

Funds given to us. Not related to adjusted expenses, premiums, or audits.

If there is anyone who has dealt with WC dividens, on a regular basis, who can point me in the right direction, I would very much appreciate it.

(If this topic does not seem familiar to you, there is no need to respond. I understand the situation, I am only hoping to receive confirmation on my thoughts, from other experts).

Thanks so much everyone! :-)

This is either "other revenue" or coded back to WC GL...right?  I want to code it to QC GL, but am unsure.

What did you end up doing with this?  I've got the same situation, seems like it will probably be an annual thing.  Once I credited it to the insurance expense, which I'm not sure is correct, but the amount was small enough I doubt it caught our accountant's attention.  I can't seem to find anything good out there related to these kinds of dividends on the greater internet!

I have a similar situation, did you ever get an answer on how to record it. My WC insurance just send us a check for prior years stating that its a "partial return of surplus (aka Dividend). This return includes accumulated interest while funds were held in escrow." 

Things to consider, we are part of small WC insurance policy for small business, every year they say we get a lower rate or higher rate depending on how the company did and that's how we also get this checks. This is NOT from an Audit adjustment. 

Will I be recording this as other income? Offset it to the WC expense account, Investment Income, Interest Income, Retained Earnings??? Please help. 

I am wondering the same thing.  We received the insurance dividend and I do not even have an account set up for it.  I assume they did a contra expense receipt in the past, but I would like to set up a ledger account for the check and use that in the future.  Do I set up a revenue account and if so what would the account be?

You are from the Quickbooks team it looks like.  The question is not how do you create a journal entry, it is what is the entry?

Thanks for joining us on this thread, bookkeepingagain. I know how important it is to select the correct accounts in your journal entry. I'm here to ensure this gets taken care of.

We're unable to provide the correct accounts to use in journal entries. I'd recommend consulting an accountant to assist you. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.

Additionally, I've added these resources that'll help you learn more about adjusting journal entries in QuickBooks Online. This way, you can make sure your books are accurate: 

• How to Use Journal Entries?
• Adjusting Journal Entries in QuickBooks

I'm only a few clicks away if you need assistance with your other QuickBooks tasks, bookkeepingagain. It's always my pleasure to help you out again.

Insurance "Dividend" check?

Dividend implies they are holding your money and owe you interest on that amount.

Is that true?

If it was a refund check, which usually happens every year once they do annual audit, then post as credit to Work Comp Insurance expense account to reduce that expense.

Work comp is usually started based on estimated number of employees and locations, etc. 

Then after year end, insurance company audits to compare what actually occurred in the year and you get billed more or get a refund check,

Aloha, we also received a Worker's Comp dividend check and I am trying to find out how to enter it into Quickbooks without creating a credit on the vendor account.  It is NOT a rebate or refund.  It is a dividend that the insurance company issues to policy holders (members). None of the responses here have adequately answered the question asked.  Does anyone have any advice?  Thank you!

Thank you for joining the thread, @KYKElectricalLLC. I'm here to help enter a Worker's Comp dividend check without creating a credit on the vendor account in QuickBooks Desktop (QBDT).

We can create a bank deposit affecting an expense account. You can refer to your accountant on what account to affect. Also, they can guide you further about the process and ensure the accuracy of your books. If you don't have one, you can check out our Find-an-Accountant tool to find an expert near you. 

Here's how:
 

1. Click on Banking at the top menu bar, and select Make Deposits.
2. From the Deposit to dropdown, choose the account you want to put the deposit into.
3. Check the deposit total. Ensure the account and selected payments match the deposit slip from your bank. You can use your deposit slip as a reference.
4. Enter the date you made the deposit at your bank.
5. You can add a memo if needed.
6. Then click Save & Close.
    

You can refer to this article for additional details: Record and make bank deposits in QuickBooks Desktop.

If you want to learn how to manage your workers' compensation in QBDT, please check out the following articles:
 

• Manual Workers' Compensation in QuickBooks Desktop
• Pay Workers' Compensation premiums
   

Feel free to post a reply if you have clarification or additional information about entering your workers' dividends in QBDT. I'll be around. Have a good one!

I too was looking for the answer to the same question you have.  I don't know if this is correct, as I am not an accountant, but I decided to create an income account to put it in.  I clicked on "New Account", then selected "Other Income" , then under tax form section "Dividend Income" popped up as an option, so I chose that.  I named the account "Workers Comp Dividend Income".  I am putting the deposit for the Dividend check there.  Hopefully I am correct and not leading anyone astray.  Good luck!

I receive these dividend checks yearly as well.  How do you post them?

I know how you can post your yearly worker's comp insurance dividend checks, steed 6. I'll guide you on how to do this below.

An insurance dividend is considered your business's share in the profits of the workers' compensation insurer. To record this, you'll have to make a bank deposit affecting the account you want to put it into. Here's how:

1. On the Homepage, select Record Deposits / Make Deposits.
2. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to dropdown.
3. Check the deposit total. 
4. Enter the date you made the deposit at your bank.
5. Add a memo as needed.
6. When you're done, select Save & Close.

For the complete guide, please see this article: Record and make bank deposits in QuickBooks Desktop.

Furthermore, you can create a summary report if you need to view your employees' totals and other payroll-related data. To guide you through the process, check out this article: Create a payroll summary report in QuickBooks.

If you have additional questions about posting yearly worker's comp insurance dividend checks, don’t hesitate to visit the Community again. We’re here to assist you further.

This was the best answer.  Then you see how much you paid for workers comp and how much you received as dividends.  The accountant can then decide if it's taxable.  I think it is, mine said so.

This is the best answer.