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Celia Graciano
Level 1

How do I record payment to worker's comp in payroll liabilty if premium is paind annually

I pay workers comp premium annually.  I set-up workers' comp in Quick book  using 'Manually Track Existing Workers’ Comp Policy'. Liability and expenses have accrued and now I have a payroll liability.  How do I pay for workers' comp in payroll liability if I have already paid the annual premium in advance.

 

Can I set up quickbooks so workers' comp liability and expense does not accrue?

 

 

Solved
Best answer November 30, 2020

Best Answers
AileneA
Moderator

How do I record payment to worker's comp in payroll liabilty if premium is paind annually

Hello, Celia Graciano. 

 

In QuickBooks Desktop is not currently designed to allow direct payment of payroll liabilities with a credit card. That said, we have two options to stop the accrued. We can either use a new bank account as a pass-through account or create a zero dollar-value check in the bank account used to pay the payroll liabilities. 

 

For more detailed information about it, you can refer to this article: Record payroll liabilities paid with a credit card.  

 

Nevertheless, I have an article to share where it tackles how each state calculates worker's compensation in premium. Pay Workers' Compensation premiums.  

 

As always, you're welcome to visit our QuickBooks Help Article page for more insights about managing your account. 

 

Please let me know if there's anything else I can do to be of assistance. Just place your concern by clicking Reply and I'll get back to you. Wishing you and your business continued success in all that you do. Stay safe!

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3 Comments 3
RCV
QuickBooks Team
QuickBooks Team

How do I record payment to worker's comp in payroll liabilty if premium is paind annually

Let me help you record the Workers' Compensation premiums payment in QuickBooks, Celia Graciano.

 

Once you pay the annual premium in advance, we need to record it QuickBooks Desktop. This is to avoid why the payroll liabilities show as overdue even though you've paid them already. We can pay your premiums using a payroll liability check. Just use the payroll item as Workers Compensation, unless you renamed it when you set up Workers Compensation.

 

Just follow the steps and details in the Set up and pay scheduled or custom (unscheduled) liabilities article to pay your Workers' Compensations. To learn more about paying your Workers’ Compensation premiums in QuickBooks Desktop, see Pay Workers' Compensation premiums article. 

 

On the other hand, QuickBooks will stop accruing the Workers' Comp liability and expense once you create a payment on it. You can also run the reports for your Workers' Comp info so you can prepare forms for state agencies or insurance companies. 

 

Feel free to visit our QuickBooks Help Article page for more insights about managing your business.

 

I'll be right here to continue helping if you have any other concerns or questions about QuickBooks. Assistance is just a post away. Have a great day ahead. 

Celia Graciano
Level 1

How do I record payment to worker's comp in payroll liabilty if premium is paind annually

the issue I have is that the annual premium was paid using a credit card, not a payroll liability check.  I recorded the transaction as an insurance expense.

AileneA
Moderator

How do I record payment to worker's comp in payroll liabilty if premium is paind annually

Hello, Celia Graciano. 

 

In QuickBooks Desktop is not currently designed to allow direct payment of payroll liabilities with a credit card. That said, we have two options to stop the accrued. We can either use a new bank account as a pass-through account or create a zero dollar-value check in the bank account used to pay the payroll liabilities. 

 

For more detailed information about it, you can refer to this article: Record payroll liabilities paid with a credit card.  

 

Nevertheless, I have an article to share where it tackles how each state calculates worker's compensation in premium. Pay Workers' Compensation premiums.  

 

As always, you're welcome to visit our QuickBooks Help Article page for more insights about managing your account. 

 

Please let me know if there's anything else I can do to be of assistance. Just place your concern by clicking Reply and I'll get back to you. Wishing you and your business continued success in all that you do. Stay safe!

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