Appreciate the complete details about your concern, @Mellane.

The Unbilled Costs by Job Report provides an instant feedback to you concerning expenses your business has incurred that have not yet been billed back to your customers. Let me share some information on how to remove your workers compensation from the Unbilled Costs report.

Here's how:

1. Open the Unbilled Costs report.
2. Double click on each transaction.
3. Click the Paycheck Detail tab once you're routed to the check.
4. Click the Unlock Net Pay button first prior to making changes.
5. Review the payroll information.
6. Click OK to proceed.
7. Change the old WC code to the updated one by clicking the drop-down arrow in the WC Code column.
8. Click OK. 

You can read through this article for more detailed steps: About Workers' Compensation in QuickBooks Desktop.

Stay in touch whenever you have additional questions or concerns. Please know I’m here to help and make sure you’re taken care of. Have a good one.