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Changing workers compensation rates does not affect previously created paychecks

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.

See also

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PPRDQSSWS804 9142 Pro 2018 ed10d3