My workers comp rate was lowered and I ran payroll with old rate

JustinB75 · ‎October 05, 2020

My workers comp rate was lowered and I did not know that until after running payroll a few times. I just so happened to log into my workers comp online account and I noticed the change and when it went into effect. We do payroll on a biweekly basis and I did run payroll a few times with the old workers comp rate. The company who I have workers comp through did take what they needed as they have the accurate rates, but obviously Quickbooks Desktop calculated something else so now my reports are off by a little bit, and I had to redo my reconciliation of the business checking account. Is this something that can be corrected even though paychecks were processed and paid (direct deposit) to employees? I do have the new rate entered and my last payroll was fine.

Thank you for all your help in advance - I appreciate it.

john-pero · ‎October 05, 2020

When you edit the wc payroll item you will select the date it changed. Over a few payrolls QB will automatically adjust the withholdings (if any) as well as your liabilities. This should all correct itself by end of calendar year . You might end up with a small (cents) discrepancy at end of your fiscal year but at that time you can create a liability adjustment

JustinB75 · ‎October 05, 2020

Will having ran a few payrolls with the incorrect workers comp rate effect my quarterly form that I file? Thank you! I really do appreciate your help!

Mark_R · ‎October 05, 2020

I appreciate you getting back to us, @JustinB75.

Yes. Workers' compensation affects your quarterly forms, especially your unemployment forms.

As mentioned by @john-pero above, QuickBooks will automatically adjust the withholdings and your liabilities. And this should be corrected by itself.

If you need further assistance with this, I suggest contacting our Phone Support Team. This way, they can provide additional information about workers' compensation.

Also, you might want to check out this article to know the different types of workers' compensation reports: Workers’ Compensation report in QuickBooks Desktop.

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day!

JustinB75 · ‎October 05, 2020

Hi Mark_R,

Right before I received your reply, I actually did a manual adjustment so the report is correct. Is that ok that I did that still?

Thank you! Everyone here has been very helpful and I appreciate you guys very much.

Rasa-LilaM · ‎October 05, 2020

I appreciate taking the initial steps in correcting your workers' comp data. JustinB75.

Yes, creating a manual adjustment is OK. This process provides a real-time solution in correcting the discrepancy in your reports.

For future reference, I’m adding these resources that cover all the information on how to resolve any payroll discrepancies.

Please know the Community has your back. If you need some help with QuickBooks, leave me a comment below. I’ll be right here to assist further. Enjoy the rest of the day.

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My workers comp rate was lowered and I ran payroll with old rate