How Do I Setup Workers Compensation In QuickBooks Payroll
I have received a payment from my workers comp insurer for wages paid to an injured employee. How should I record the deposit? Should it be recorded as income or put to the wage account? I had tried QuickBooks Support Number to discuss but there is long queue , So I am here posting my question for help .
✅ Best Answer :
One way to record this is through bank deposit.
In creating the bank deposit, you can use the asset account to allocate the amount received. First, create an asset account in the Chart of Accounts and name it Workers Compensation.
This is how to create the asset account in QuickBooks:
- Click on the Gear icon.
- Click on Chart of Accounts.
- Click the New button. A pop-up window will open.
- Choose the appropriate Category Type for the account.
- After Category Type is selected, the Detail Types related to that account type will be visible.
- Click Save and Close.
And here’s how to record a bank deposit:
- Click on Create (+).
- Choose Bank Deposit.
- Under Account, select the bank account to allocate the workers compensation received.
- From Add funds to this deposit, under Account choose an asset account, and enter the amount received.
- Click on Save and Close.
If the asset account is not reduced by the employees pay run, you need to create a Journal entry using a liability account to offset the asset account. I’d recommend you reach out to your accountant for guidance on this.
Let me know how this goes or if there’s anything else you need. I’m here anytime you need assistance.
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