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A
accounting-kardi
January 3, 2024
Question

Why is my worker's comp being calculated at 160 hours per month for part time employees?

  • January 3, 2024
  • 1 reply
  • 0 views
For example, I have a salaried employee who works 30 hours a week.  Her worker's comp is being calculated at 40 hours per week.

1 reply

R
ReymondO
January 3, 2024

Good day, @accounting-kardi.

 

Thank you for raising your concern on the QuickBooks Community page. The calculation of worker's compensation in QuickBooks depends on the regulations established by the state.

 

For instance, in WA, QuickBooks follows WA L&I regulations and calculates workers’ comp at 160 hours per month for salaried employees. Workers’ comp is calculated on the employee’s first paycheck of each month. For commissioned employees, you need to enter hours when creating paychecks so that WA workers’ comp will calculate accordingly.


If you need to make adjustments to your employee's worker's compensation, I recommend reaching out to our Payroll Team. They can provide further information on the rules set by your state for calculating worker's comp in the program. Here's how to contact them:

 

  1. Sign in to your QuickBooks Online company.
  2. Go to Help (?).
  3. Select Contact Us.
  4. Enter your concern, then click Let's talk.
  5. Choose a way to connect with us:
    • Start a chat with a support expert.
    • Get a callback from the next available expert.

 

For additional reference, please see these articles:
 

 

If you have any additional questions about worker’s comp calculation, please feel free to add them to this thread, and I'd be happy to assist you. Have a great day.

A
accounting-kardiAuthor
January 3, 2024

Thank you for your response.  These employees aren't commissioned employees.  From my understanding commissioned employees are people who are paid in part based on their sales or other metrics of job performance. They are salaried employees who don't work 40 hours per week.  QB payroll tracks their hours and lists the hours on their checks so its odd that those hours aren't used in the worker's comp calculation and that a standard number is used instead.  Per WA state law "you should report the actual number of hours/units worked by your employees. Do not include sick leave hours, vacations or holidays, even if it is paid leave. 

 

Now my employees have had too much withdrawn from their paychecks because it was based on 160 hours per month vs. the actual amount which is entered and furthermore, we have overpaid the state.  

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