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Use the Workers Compensation feature when you pay insurance in more than one state

The Workers Compensation feature is not set up to support workers compensation calculations for multiple states. There are some things you can do to use the feature for at least part of your calculations.

Getting started

Use the Workers Compensation Setup Wizard to set up the Workers Compensation feature, with these additional instructions:

  • Create different workers compensation codes for the same jobs in different states. This allows you to assign state-specific rates to each code, as different states sometimes have different rates for the same job.

  • If you have different experience modification factors for different states, set your the rate for your experience modification factor to 100. Why?

    The Workers Compensation feature does not support multiple experience modification factors. Setting the rate for your experience modification factor to 100 allows you to use the workers compensation reports to calculate your subtotals in each state. You can then follow the instructions below to calculate your total workers compensation premiums.

Calculating workers compensation premiums for each state

  1. Open the workers compensation summary report for a given time period.

  2. Modify the report by choosing the Workers Comp Code filter and then selecting all the codes that apply to a single state.

  3. In the filtered report, take the total in the WC Premium column and multiply it by the experience modification rate for the corresponding state. This gives you your adjusted (final) workers compensation premium for that state for the given time period.

Paying workers compensation premiums

Pay your premiums using a payroll liability check, as you would if you were paying workers compensation in a single state. However, you might need to adjust the actual amount you owe, since QuickBooks will not multiply your subtotal by the experience modification factor in each of your states.

To figure out how much of an adjustment you should make to your Workers Compensation liability

  1. Follow the instructions above to calculate your state-by-state premiums for a given time period.

  2. Total the final sums for each state.

  3. Compare the final amount to the amount for the Workers Compensation payroll item in the Pay Liabilities window for the given time period. The difference is the amount that needs to be adjusted.

  4. Follow the steps for adjusting a payroll liability.

See also

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