Some insurance companies assign you an experience modification factor to use
when you calculate your workers compensation premiums. This rate is based on
your company's record of workers compensation claims. The better your track
record, the lower your rate (or at least the fewer increases), which sometimes
results in a discount on your workers compensation premiums. The more claims
you have, the higher your rate, which sometimes results in a higher
If you use the Workers Compensation feature in QuickBooks and your insurer
has asked you to use an experience modification rate in your workers
compensation calculations, QuickBooks needs this information to provide you
with accurate and complete workers calculations and compensation reports. If
you are not sure whether you are supposed to use one or not, contact your
workers compensation insurance company.
You initially enter your experience modification factor as part of the
Workers Compensation Setup wizard. If the rate for your experience modification
factor changes later, you can update it from the Workers Comp Code list.
company's experience modification factor