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Wailele
December 29, 2019
Question

How do I record a insurance dividend check? This is from my workmans comp insurance.

  • December 29, 2019
  • 2 replies
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Original commenter did not share additional details

    2 replies

    T
    Teri11_2
    December 29, 2019

    Work comp insurance dividend check is an unusual combination of words from my experience.

     

    I assume you received a check from the insurance company you pay to for work comp insurance.

    "Dividend" confuses that assumption for me.   Do you know WHAT they are paying you for?

     

    - Refund for overpayment?

    - Adjustment following annual audit?

     

    Work comp insurance companies typically estimate your premium based on info you provide and then audit at year end and adjust amount they charged you, which could give you refund.

     

    Assuming that is the case, your entry should debit cash and credit work comp insurance expense.

    W
    WaileleAuthor
    December 30, 2019

    Aloha,

    My work comp insurance carrier distributes dividends to policyholders who have been insured for more than one year and who have demonstrated safety records that basically keep claims down they refer to this as their Dividend Distribution Plan. Thanks for your help.

    L
    Liz2015
    February 10, 2022

    I have a similar situation, did you ever get an answer on how to record it. My WC insurance just send us a check for prior years stating that its a "partial return of surplus (aka Dividend). This return includes accumulated interest while funds were held in escrow." 

    Things to consider, we are part of small WC insurance policy for small business, every year they say we get a lower rate or higher rate depending on how the company did and that's how we also get this checks. This is NOT from an Audit adjustment. 


    Will I be recording this as other income? Offset it to the WC expense account, Investment Income, Interest Income, Retained Earnings??? Please help. 

    C
    CareyLeigh83
    June 3, 2020

    I have the same question. However, I actually am referring to an annual "dividend check". We received 14% back for our safety record, in our state. Nothing to do with audits, or premiums. It is literally bonus income.

    Funds given to us. Not related to adjusted expenses, premiums, or audits.

    If there is anyone who has dealt with WC dividens, on a regular basis, who can point me in the right direction, I would very much appreciate it.

    (If this topic does not seem familiar to you, there is no need to respond. I understand the situation, I am only hoping to receive confirmation on my thoughts, from other experts).

    Thanks so much everyone! :-)

      M
      MolinaR
      April 2, 2021

      This is either "other revenue" or coded back to WC GL...right?  I want to code it to QC GL, but am unsure.

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