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August 3, 2023
Question

How to change or verify workers compensation class rates?

  • August 3, 2023
  • 1 reply
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1 reply

August 3, 2023

Thanks for reaching out here with your concern, Karin18. I've got steps to help you change Worker's Compensation class rates in your payroll account.

 

With QuickBooks Online Payroll, we can only accommodate one class and rate per employee. Since worker's compensation helps protect employees from on-the-job injuries and other legal expenses, you can modify your compensation class rates for them. To do this:

 

  1. In your QBO account, go to Payroll and select Employees.
  2. Choose your employee's name and select Edit next to Pay.
  3. From What is (Employee's) workers' comp info? Select Edit workers' comp info.
  4. Click Yes, I have the tax rate.
  5. Enter the following information:
       - Class: first 4 digits of the Class Code
       - Subclass: the second set of digits on the Class Code
       - Nature of work (optional): listed as the Class Code Description on the rate notice
       - Composite rate: the total rate of Employer + Employee
       - Payroll deduction: the employee rate used to calculate the amount on your employee’s paycheck.
       - Effective date
  6. Select Done. You can now assign the same class or set up other classes for the rest of your employees.

 

In addition, here's an article that contains a list of payroll reports you may use to obtain information about your employees' earnings, taxes, and deductions.: Run payroll reports in QuickBooks Online Payroll.

 

We're always ready to back you up if you require additional assistance managing worker's compensation rates, Karin18. Please let us know in this thread. We'll ensure to get you covered. Have a good one!