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Level 1

Workers Compensation Liability

I began tracking WC with payroll in QB Desktop.    My problem is that the payroll liability is calculating at pennies on the dollar while my WC summary and detail reports are correct.   Where could I make a change to correct this?    I know where the liability adjustments can be made, but looking to correct the problem to prevent in the future.   I'm assuming it is a settings.   Thank you!!

3 Comments 3

Workers Compensation Liability

We appreciate you joining this forum and sharing your insights, @Jjones2750,


You may notice that QuickBooks changes tax amounts by a few pennies, even though there are no changes to the employee's pay rate, tax setup, or deductions. These differences are due to rounding for taxes that are calculated at exact rates (such as Social Security and Medicare). Our system ensures that the employee's YTD totals for those taxes are always exactly correct. You and the employee don't need to be concerned about these small variations.


For now, the option to turn off rounding with the Worker's Comp amount is currently unavailable. It is a default function in QuickBooks to automatically round off amounts to have a flat rates to avoid discrepancies. For more details about this, you can check out this article: Rounded numbers cause discrepancies in tax calculations.


Having the option to change this preference is a brilliant idea. Did you know that you can also take part with our product enhancements? We want your voice to be heard and be put in action. To log a suggestion to our developers for estimates, go to the Help menu and select Send Feedback Online.


For now, you can use the liability adjustment option if you want to correct this penny differences.


If you have additional questions about payroll or Worker's Comp, let me know in the comment. I'll be glad to share some more insight to help your way around QuickBooks. Have a good day!

Level 1

Workers Compensation Liability

Thank you for responding, I don't believe I explained my problem very well.   On the "Payroll Liabilities Report"  my workers compensation liability (also what is on the balance sheet) is incorrect and only calculated $66.33 for the monthly liability while the Workers Compensation Summary report is correct with over $5000.00.  Shouldn't the two amounts reconcile?


Workers Compensation Liability

Hello there, Jjones2750.


The amount showing on the Payroll Liabilities report depends on the payroll items that use the payroll liabilities in QuickBooks Desktop. That is why the report is generating a different amount compared to the other report you've mentioned.


You may want to take a look at this website to get additional information about the incorrect figures for payroll liabilities in QuickBooks Desktop: Payroll Liability and/or Balance Sheet Report shows incorrect amounts for payroll liabilities


Comment below if you need anything else. Stay safe and healthy. 

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