First, you need to set up the Workers Compensation feature using the Workers
Compensation Setup wizard. This wizard helps you assign default workers
compensation codes to employees, decide whether you want to exclude overtime
premiums from workers compensation premium calculations, and enter an
experience modification factor, if you have one.
Then, each time you write a paycheck, QuickBooks accrues workers
compensation premiums for each earnings item that has a workers compensation
code assigned to it. If you assigned a default code to an employee in the
workers compensation setup, QuickBooks automatically assigns that code to the
employee's earnings items on their paychecks.
To see how much workers compensation accrues on each paycheck,
look for Workers Compensation in the Company Summary portion of the Preview
When you want to find out how much you have accrued in workers compensation
premiums, you can run a workers compensation summary report.
Since your workers compensation premiums accrue as payroll liabilities, when
it comes time to pay your premiums, you will use the Pay Liabilities window to
create a payroll liability check.
Automatically pay workers compensation premiums: Intuit offers a pay-as-you-go service that calculates workers compensation premiums based on actual QuickBooks Payroll data and automatically pays the amount that's due every time you run payroll.
Setting Up Workers Compensation
Workers Compensation Overview