3 Workers' Comp Tips Using QuickBooks
If you have clients who have employees, then they pay into workers comp and you need to know all about workers comp in order to help. Every year, companies probably go through a workers comp audit that verifies whether what they paid in premiums matches what they paid employees based on the hours, dollars and type of work your employees did during the year. Usually, the auditor will give them a list of what they’re looking for in the audit.
If you or your clients process payroll in QuickBooks®, there are some tools that you can use to pull the workers comp audit information together much faster and sometimes save additional premiums.
Tip #1: If you process payroll in QuickBooks, you can track your Workers Comp. Turn on the Workers Comp feature in the QuickBooks company preferences (I know many are unaware of that feature that “sneaked” into the preferences).This feature will take affect from the date that you set BUT will not go retroactive. Since many clients are in the middle of their workers comp year, this step will give them only some of the information they need for this year, but next year they will have all the information they need.
Next, enter the different workers comp codes for the organization. You’ll find the list on the form from the insurance company. From the Menu Bar in QuickBooks, click on List>Workers Comp List., then fill in the information you see below.
Enter your experience mod factor.
Then, either assign a code to an employee in the employee record or, if the employee does multiple types of work for you, assign the code to the actual work he or she does when you enter their information in their timesheet.
Then, either assign a code to an employee in the employee record or, if the employee does multiple types of work for the client, assign the code to the actual work they do when you enter their information in their timesheet.
Tip #2: If your client does not process payroll in QuickBooks, Classes could be an option if you use Classes to represent the type of work they do. I know this is not an option for everyone, but this feature helped one of my clients actually pick up an additional code that had a lower rate.
Tip #3: Assuming the client’s auditor comes every year, there is probably a set group of reports the auditor requests. Create a group of reports for Workers Comp so that you just have to run the group. This would be a two-step process. First, create a group in the Memorized Reports list, then run a report and memorize it and put it in the Workers Comp group. To run the group, you can either go to Process Multiple Reports and select the Workers Comp group or to your Memorized Report list and double-click on the group name (all reports will run).