Worker's Compensation rate based on hours worked
In Payroll, the Workers Compensation topic seems to only apply to a rate based on gross wages. How do I set it up if our rate is based on hours worked?
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ce5FzWKEir4iKgacwZ5xHE
06/08/11 8:18am PDT
Viewed by asker 06/13/11 8:51am PDT
Viewed by asker 06/13/11 8:51am PDT
5 Replies
SunburstSoftware
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06/08/11 10:53am PDT
Hi
You are correct, the current QB Workers Compensation feature only calculates on gross wages.
If you need to calculate based on hours worked you'll need to set up your own WC Item as a Company Contribution type, based on Quantity. Add that payroll contribution item to each employee's record and when you create your paychecks manually enter the "quantity" or hours worked and then QB will do the rest.
I hope this helps - if so please mark it as "solved" or give it a "thumbs up", otherwise please post back with additional questions.
Nancy Smyth
Sunburst Software Solutions, Inc.
Certified QuickBooks ProAdvisor 2000-2010. Visit the QuickBooks for Contractors blog
Sunburst Software Solutions, Inc.
Certified QuickBooks ProAdvisor 2000-2010. Visit the QuickBooks for Contractors blog
06/11/11 8:43am PDT
Thank you Nancy. And for the employee portion of WC based on hours worked?
06/12/11 7:03am PDT
The solution
If the employee pays it, I think I would use a payroll deduction item - be sure to check if it is to be deducted from gross or net pay.
Additionally, if you are paying this to the State, instead of a private worker's comp insurance company, you may want to set it up as an employee paid tax item - in QB that would be an Other Tax type.
06/12/11 10:47am PDT
Great answer, it is more of a tax item in this state (Washington), I will set it up as Other Tax Type for both employee and employer share. Because it is purely based on hours worked, it does not matter much if deducted from gross or net pay, but I will deduct it from gross pay, just to be consistent with other tax deductions.
06/13/11 6:30am PDT
Latest post
I figured that you were in one of the few states that has both an employer/employee Unemployment tax!
Other Tax type is definitely the way to go.
Good luck to you.
