Workers’ Compensation Feature QuickBooks Payroll
Payroll is one add-on application introduced by Intuit which integrated with QuickBooks ensures that along with other financial accounting tasks, even payroll is handled automatically by the software. This helps to complete required payroll tasks along with Payroll tax tasks as well efficiently with minimized scope of errors.
One section of Payroll accounting that software works effectively with is calculating compensation and bonuses to be distributed to the employees. Below details is related to Workers Compensation part of Payroll.
However, before we begin there are certain points to keep in mind:
- QuickBooks Software in use should be updated with latest patches.
- Active Payroll Subscription is required (especially assisted and enhanced payroll plan)
- QuickBooks can calculate only for one Workers Compensation provider. If the user has more than one provider, rest will have to be calculated manually.
- Annual limits under Workers Compensation have to be tracked manually as well, as QuickBooks does not track them.
Even consult with QuickBooks Payroll Support Number in case having problem while you are following all steps for Employee Salary Calculation QB Payroll.
Setting up Workers Compensation under QuickBooks Payroll
In order to set up the Workers Compensation feature in QuickBooks Payroll, follow the steps written below:
- Open the software, select Edit tab from the main menu bar and then click on Preferences option.
- From the options present on left side select Payroll and Employees, followed by Company Preferences option.
- Select Workers Compensation tab
- If the Workers Compensation have to be traced, then click on checkbox against Track Workers Comp:
- Select either of the option –
- Display Message to Assign Codes – showcases messages related to Workers Comp under QuickBooks.
- Exclude overtime premium from Workers Comp calculation – it will be displayed on the report as a separate category.
- In order to not track click on the box again to clear it.
- Click on OK tab.
- Click on Employees tab, followed by Workers Compensation from the menu and then Manually Track Existing Workers Comp Policy option.
- Wizard setup will guide to setup the process along with setting of different codes for employees in case different employees are provided different workers comp codes.
- In case the user wishes to set overtime premiums apart from standard ones, then while setting up workers comp follow the steps below:
- Overtime Payments Window – Yes option
- Overtime Premiums and Workers Compensation Calculations window: No, I exclude overtime premiums from my calculations option (If the user clicks on this option that overtime premium has to be excluded, then it will be categorised on the report separately.
- Select either of the option –
Help For Workers Comp Report, Audit,Code, Refund Etc in Intuit Payroll
What components should be contained in workers’ compensation payroll?
💠Over award payments
💠Overtime, Shift, or other allowances
💠Payments to working directors (including directors’ fees)
💠Payments to pieceworkers.
💠Expenditures for public holidays, sick leave, and the linked leave loadings.
💠Substitutes value for wages.
What is Workers Comp Payment Service?
This service is useful for sending the worker’s payroll data to the associated insurance provider.
What type of account is available for workers’ compensation in QuickBooks?
In QuickBooks, you are free to generate an account name. It must be connected to a correct account type. However, you can use the Expense account name and type for Workers Comp or can create a subaccount of Payroll.