I originally didn't setup my Workers Comp manually and after one payroll I have an amount in payroll Liabilities. I pay this monthly online with the insurance company and just need to track the payroll by code and do not need to accrue liabilities. I have now gone through the set up manually process but need to know how to get the amount out of liabilities.
I have all the steps you'll need to clear your payroll liabilities, @CindyP3.
You may enter prior payments and choose the Affect liability accounts but not the bank account option. Selecting this option will cause the prior payment to not have an effect on your bank register.
These instructions are available from our guide on entering historical tax payments in Desktop payroll. Doing this will clear the amounts in the Payroll Liabilities report.
Additionally, here are some resources for more insights about calculating your total Workers' Compensation premiums:
Please let me know if there's anything else I can do to be of assistance. I'm determined to ensure this payroll liability issue gets straightened out. Have a great day.
I need to make sure you completely understand my situation before I try your solution. I just started doing payroll in January and have completed one payroll. Therefore I have not paid workers comp prior to this and that is what I want to remove from liabilities.
I do not need to pay workers compensation from payroll. All I was trying to do was track my workers comp by code so that I could go online to the insurance web site and pay by workers comp. I have other discounts and charges that apply to my workers comp liability and can not pay it through payroll.
All I really want to do is remove the amount showing in payroll liabilities and track my wages by wc code and not record any more liability for wc.
If your solution will work in this case I will be thankful. I just didn't want to try it and it make the situation worse.
I have since figured out how to remove the liability by going in on each paycheck and changing the employee wc code to exempt. I just need to know if I can track wc by code without creating any liabilities. If not I will have to do it by hand each week.
Let me know if you have a solution for tracking without recording liability.
Great job in removing the liability from your employee's paycheck, @CindyP3.
Let me shed some light regarding tracking the Workers' Compensation code in QuickBooks Desktop.
If the employee's code was set to Exempt upon the setup, then this won't create any liability.
However, if there's a specific code assigned to the employee and you need to change it Exempt on the paycheck, this needs to be done manually like what you did to the previous paychecks.
You can edit the employee's Workers' Compensation code to the accurate one. This way, it will take effect on your succeeding payroll transactions.
To learn more about managing Workers' Compensation together with modifying its rate, please scan through this link: Learn how to set up your Workers’ Compensation in QuickBooks Desktop.
I'll be around to provide more help if there's anything else you need. Keep safe!
On setup my employees were setup with the correct wc codes. My question is if I run payroll with these codes will it create a liability or will I have to go back and edit the checks to exempt after I get my wc tracking report?
Thanks for getting in touch with us here, @CindyP3.
Yes, running payroll with these codes will create a liability since QuickBooks tracks the Workers Compensation as a payroll liability. To see the accounts affected by this item, follow the instructions listed below.
You can follow the steps listed from our guide on manually tracking Workers' Compensation in QuickBooks Desktop. At the bottom of the page, you can find steps on how to edit the rate, as well as the Experience Modification Factor.
Don't hesitate to post a comment below if you have other questions. We're always available here to help.