|Terminologies Workers Compensation code – the way Workers’ Compensation insurance companies divide the types of work your employees perform, so they can determine what insurance rate to assign to each type of work.Experience Modification factor – rates assigned by some insurance companies to use when you calculate your Workers’ Compensation premiums. This rate is based on your company’s record of Workers’ Compensation claims. The better your track record, the lower your rate (or at least the fewer increases), which sometimes results in a discount on your Workers’ Compensation premiums. The more claims you have, the higher your rate, which sometimes results in a higher premium.|
Set up manual Workers Compensation:
|Note: You must set up the manual Workers Compensation feature using the Workers Compensation Setup Wizard before you begin paying employees or your reports might be incorrect or incomplete.|
- Go to the Edit menu, then select Preferences.
- Select Payroll and Employees on the left, then go to the Company Preferences tab.
- Select Workers Compensation.
- Put a check in the Track Workers Comp checkbox. Also put checks to the following checkboxes:
- Display message to assign codes. – to display the Workers Comp messaging in QuickBooks.
- Exclude overtime premium from Workers Comp calculation. – to show overtime premium as a separate item on your report.
- Select OK, then OK.
- Go to the Employees menu, then select Workers Compensation > Manually Track Existing Workers’ Comp Policy. Complete the Workers Compensation Setup Wizard. Note that this allows you to set up a code for each employee.
I pay insurance in more than 1 state:The manual Workers Compensation feature is not set up to support workers compensation calculations for multiple states. There are some things you can do to use the feature for at least part of your calculations. To set it up, complete the Workers Compensation Setup Wizard with these additional instructions:
- Create different Workers Compensation codes for the same jobs in different states. This allows you to assign state-specific rates to each code, as different states sometimes have different rates for the same job.
- If you have different Experience Modification factors for different states, set your the rate for your Experience Modification factor to 100.Why? The manual Workers Compensation feature doesn’t support multiple Experience Modification factors. Setting the rate for your Experience Modification factor to 100 allows you to use the Workers Compensation reports to calculate your subtotals in each state. You can then follow the instructions below to calculate your total Workers’ Compensation premiums.