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Contractors who subcontract any part of their work may be liable for coverage for the subcontractor’s employees if the subcontractor does not have coverage. In Delaware, businesses with one or more employees are required to carry workers’ comp insurance. In Connecticut, all businesses with 1 or more employees—whether full-time, part-time, or contract—are required to carry workers’ comp coverage, including uninsured subcontractors. In California, all employers and work situations must carry workers’ comp coverage. If you’re an out-of-state employer, you may need coverage for any employees regularly working in California, or if you enter into a contract of employment. In Arizona, any business that regularly hires or employs at least 1 employee—regardless of the number or type of workers—is required to carry workers’ comp insurance.

  • Sole proprietors, partners, and corporate officers don’t count toward the employee total if they choose not to cover themselves.
  • The Alaska Department of Labor and Workforce Development, Division of Workers’ Compensation, manages workers’ compensation in Alaska.
  • If you need a new workers’ comp policy, we partner with our trusted insurance broker, AP Intego to get you a quote.
  • Many businesses need full job costing of payroll including workers’ comp costs.
  • The Maryland Workers’ Compensation Commission manages workers’ compensation in Maryland.

So while writing a paycheck, it adds to their workers’ compensation premium for every income item. Insert the required information of your workers’ compensation insurance provider, where you can pay your premium. Enter the needed info of your workers’ comp insurance provider, where you pay your premium to. You will find a few tips to help you maintain records for your workers’ comp records within QuickBooks below.

How Do I Track Subcontractor Payments In Quickbooks?

With coverage secured through QuickBooks, your clients can rest easy. AP Intego experts are standing by to help them get the coverage they need for their situation. Premiums are calculated each payroll using employee and wage data, and can be deducted automatically during payroll. Clients have more cash flow on hand throughout the year, and your year-end audits are easier and more accurate. Answer a few questions about your client’s business to see what coverage is typically required.

The above steps should definitely help to set worker compensation option in QuickBooks payroll. However if you require any more details and information for the same, then it is advised to contact the QuickBooks Payroll Customer Service team and acquire professional support instantly. If you are unable to connect with them due to long queue then you can try alternative support bookkeeping agency. One such agency is called QBPayrollHelp housing experienced QuickBooks experts. You can call them up on their Toll Free Number 📞+ or visit their website – for online chat options. Workers’ compensation insurance companies typically change the rates they charge annually for each code. After receiving new rates from your insurance company, enter them in QuickBooks.

Pay As You Go Protection For Workplace Injuries

Required in most states,1 workers’ comp is a form of insurance that helps protect you and your employees in case of on-the-job injuries, including medical coverage and wage replacement. The Hartford is one of the largest insurance carriers and workers compensation providers in the nation, with over 200 years of experience and commitment to small business owners. Let us show you why The Hartford offers superior coverage and better payment programs. We’re proud to partner with The Hartford and to offer XactPay workers’ compensation coverage.

If you have employees, then you may be familiar with workers’ compensation. Most states will require employers to undergo annual workers’ comp audits to verify that you, the employer, are paying the correct amount of premiums into your state’s workers’ comp fund.

In Alabama, most businesses with 5 or more regular employees must have workers’ comp coverage, unless your workers are household employees or farm laborers. There are severe consequences for businesses that don’t have workers’ comp insurance. These consequences include heavy fines, exposure to lawsuits, and forced closure of your business. QuickBooks Online Payroll offers 17 payroll reports that cover everything from employee details and payroll costs to workers’ compensation and tax liabilities. We’ll look at how to run a payroll report in QuickBooks Payroll Online, plus how to drill down for details and void a payroll check through reports. The Xpress program enables employers to report their payroll and calculate their premium online without QuickBooks or any dependence on a payroll processing company or other software. This course is designed to educate accounting professionals about what workers’ comp is and why our clients need it.

quickbooks workers comp

Get your client a free quote for Pay As You Go workers’ comp powered by AP Intego, with payments that adjust to their needs. Farmers who employ 6 or more workers on the same day for any 20 days during the calendar year must purchase insurance no later than 10 days after the 20th day of employment. Sole proprietors, accounting LLC members, and partners do not count toward the number of employees a business has, but corporate officers do unless there are only 2 of them and the company has no other employees. Sole proprietors, partners, LLC members, and corporate officers are all included in coverage but can choose to be excluded.


Design different worker’s compensation codes for identical jobs in several states. This enables you to assign state-specific rates to every code, as several states sometimes have different rates for the related job.

If you have employees who perform multiple types of work for you, you will need to enter this information in their timesheets. Assigning an employee code in the employee records will result in an error in a portion of an employees’ time if they perform multiple job types. You can track your workers’ comp by turning on the feature in QuickBooks.

quickbooks workers comp

This includes all workers who are part-time, full-time, minors, aliens, or family members. This kind of plan lets you send your premium payments to your workers’ comp carrier based on your actual payroll info—no guesswork needed! Intuit believes pay-as-you-go is better for small businesses, as this improves cash flow compared to single annual payments.

Corporate officers are considered employees unless they choose to exempt themselves from coverage. Sub-contractors are responsible for providing coverage for their workers but primary contractors are responsible for ensuring that the sub-contractor has worker’s comp insurance. Agricultural businesses with 6 or more regular employees and 12 or more seasonal employees who work for more than 30 days are required to carry coverage. Single-member LLCs are not required to carry worker’s comp coverage but may purchase it. You’re not required to carry coverage for those employees who are able to self-insure.

The better prepared you are for your workers’ comp audit the easier they are. Using two simple fields in your QuickBooks can make preparing for your audit a 5 minute project not a two day ordeal. I help my clients make sure their employees are in the correct class codes for their industry. This can save P&l Accrual Vs Cash Accounting them money if any of their employees are miscategorized. In addition to class codes, experience modification rates need to be accurate so there are no unwarranted or closed claims that affect the premium. Nothing gives me more satisfaction than saving the client money because they appreciate it so much.

quickbooks workers comp

As a trusted business advisor, it’s common for our clients to ask our team to handle their workers’ compensation audits each year. Depending on the insurance carrier, the preparation can take as much as four hours to complete. This presents another opportunity to introduce Pay As You Go in the context of alleviating unnecessary end-of-year stress.

You have to establish workers’ compensation before paying your employees so that your report is not inaccurate or unfinished. Remember, this feature will only take effect from ​the date you set and won’t track any workers’ comp information retroactively.

Posted by: Steve O’Hear


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