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How to Generate a Workers' Compensation Report in QuickBooks Desktop

· 6 min read
Debits

Introduction​

Workers' compensation insurance is crucial for businesses to ensure that employees are protected in case of workplace injuries or illnesses. Many states require employers to report workers' compensation information periodically, making it essential for businesses to track payroll data related to workers' comp accurately. QuickBooks Desktop offers tools to help you generate a Workers' Compensation report, simplifying the process of staying compliant with state laws.

This guide will walk you through the steps to set up, track, and generate a Workers' Compensation report in QuickBooks Desktop.

Why Track Workers' Compensation in QuickBooks?​

  1. Compliance: Many states mandate regular reporting of workers' compensation details.
  2. Accurate Premium Calculations: Tracking workers' compensation in QuickBooks helps you calculate insurance premiums accurately.
  3. Efficient Record-Keeping: QuickBooks consolidates all payroll data, making it easier to access and review workers' compensation information when needed.
  4. Improved Budgeting: Understanding your workers' compensation expenses allows for better financial planning and budgeting.

Step 1: Set Up Workers' Compensation in QuickBooks Desktop​

Before you can generate a Workers' Compensation report, you must set up workers' comp tracking in QuickBooks.

1.1: Access Payroll Settings​

  1. Open QuickBooks Desktop: Log in to your QuickBooks Desktop account.
  2. Go to the Employees Menu: From the top menu, select Employees.
  3. Select Workers Compensation: In the dropdown menu, choose Workers Compensation > Manage Workers Compensation.

1.2: Assign Workers' Compensation Codes​

Workers' comp insurance providers assign classification codes based on the type of work employees perform. QuickBooks allows you to assign these codes to ensure accurate tracking.

  1. Click Add/Edit Classifications: In the Workers' Compensation setup window, select Add/Edit Classifications.
  2. Assign Codes to Employees: For each employee, select the appropriate workers' compensation code based on their job role. This classification helps determine the premium rate.
  3. Save Changes: After assigning codes, click Save to store the information.

1.3: Set Up Workers' Comp Preferences​

  1. Go to Edit > Preferences: In QuickBooks, go to Edit in the menu, then select Preferences.
  2. Choose Payroll & Employees: In the Preferences window, select Payroll & Employees.
  3. Enable Workers' Compensation Tracking: Check the box for Track Workers Compensation to enable tracking in payroll.

Step 2: Run Payroll with Workers' Compensation​

After setting up workers' compensation codes, make sure to run payroll as usual. QuickBooks will automatically track workers' compensation data for employees based on their classification codes and earnings.

2.1: Process Payroll with Workers' Comp Codes​

  1. Go to Employees > Pay Employees: Navigate to the Employees menu and select Pay Employees.
  2. Run Payroll: Process payroll as you normally would. QuickBooks will apply the assigned workers' comp codes to each employee's pay.

2.2: Verify Workers' Compensation Calculations​

  1. Review Payroll Summary: After running payroll, check the payroll summary to verify that workers' compensation calculations are included.
  2. Adjust as Necessary: If there are discrepancies, review the employee’s classification codes and correct them if needed.

Step 3: Generate the Workers' Compensation Report​

Now that workers' compensation tracking is set up and payroll is processed, you can generate a Workers' Compensation report in QuickBooks Desktop.

3.1: Access the Report Center​

  1. Go to Reports: In QuickBooks Desktop, go to the Reports menu at the top.
  2. Select Employees & Payroll: From the dropdown, choose Employees & Payroll.
  3. Choose Workers' Compensation: In the Employees & Payroll section, select Workers' Compensation.

3.2: Customize the Workers' Compensation Report​

  1. Select Date Range: Set the date range for the period you need to report, such as monthly, quarterly, or annually.
  2. Filter by Classification (Optional): If needed, filter the report by specific workers' compensation codes or classifications.
  3. Run the Report: Click Run Report to generate the Workers' Compensation report.

3.3: Review and Save the Report​

  1. Review Report Details: Verify that the report includes all employees and their respective workers' compensation data, including wages, hours, and classifications.
  2. Export or Print: You can export the report to Excel for further analysis or print it directly from QuickBooks for record-keeping or submission to your insurance provider.

Step 4: Submit the Report to Your Workers' Compensation Provider​

Once your report is generated and verified, you can submit it to your workers' compensation insurance provider if required by state law or insurance policy.

4.1: Check Submission Requirements​

  1. Contact Provider: Each insurance provider may have specific requirements for submitting workers' compensation data. Contact them to confirm details like format and frequency of submissions.
  2. Prepare the Report: Make any necessary adjustments to the report to meet your provider’s requirements.

4.2: Submit the Report​

  1. Upload or Mail the Report: Some providers allow digital submissions via email or an online portal. Others may require a printed copy.
  2. Keep a Copy: Always retain a copy of the report for your records, either as a physical printout or as a saved file on your computer.

Troubleshooting Common Issues​

Issue 1: Missing Workers' Compensation Codes​

  • Solution: If you’re missing workers' comp codes, go back to the Manage Workers Compensation section under Employees and verify that each employee has been assigned the correct classification code.

Issue 2: Workers' Compensation Report Doesn't Include All Employees​

  • Solution: Make sure that all employees are assigned a workers' compensation classification and that tracking is enabled in the Preferences section.

Issue 3: Incorrect Calculations in Workers' Comp Report​

  • Solution: Review each employee’s assigned workers' comp code and check payroll calculations. Errors in classification codes or payroll entries can affect workers' comp calculations.

Tips for Accurate Workers' Compensation Tracking​

  1. Regularly Update Employee Classification Codes: Employees may change roles, which could require new classification codes. Ensure classifications are updated in QuickBooks to maintain accuracy.
  2. Review Reports Quarterly: Generate Workers' Compensation reports quarterly to stay on top of your reporting obligations and identify any discrepancies early.
  3. Consult Your Insurance Provider: Some insurance providers have unique requirements for reporting workers' comp data. Stay in touch with your provider to ensure compliance.

Conclusion​

Generating a Workers' Compensation report in QuickBooks Desktop is essential for maintaining compliance with state regulations and managing workers' compensation insurance effectively. By setting up workers' compensation codes, tracking payroll accurately, and generating periodic reports, you ensure that your business remains compliant and financially protected.

Following the steps in this guide will help you manage and submit accurate workers' comp data to your insurance provider, saving you time and reducing the risk of errors. For additional support, consult QuickBooks help resources or reach out to your insurance provider for specific guidelines.