When you modify a rate for a workers compensation code or for an experience
modification factor, the change does not affect premiums that were calculated
between the effective date of the change and today. This is because QuickBooks
calculates workers compensation premiums at the time the paycheck is
created. Workers Comp reports are updated to reflect the change but individual paycheck transactions are not. You may find that your report totals and your liability totals don't match.
Let's say you create a paycheck for an employee and that employee has
$1,000 in earnings. The rate of the workers compensation code
assigned to those earnings is 6.73. When you create the paycheck, QuickBooks
calculates the premium at the same time: 6.73 x 1,000, or 67.30. It stores that
number and then includes it whenever you run a workers compensation report for
the period that includes that paycheck.
If you later change the rate for that workers compensation code to 5.92
and you set the start date for that new rate to a date before
the date of the paycheck, QuickBooks does not recalculate the workers
compensation premiums for that paycheck. Instead, the premium remains
$67.30. To make the report totals and your liability totals balance, you need to make manual payroll liability adjustments.
What if my reports don't match my liabilities?