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victoriah1956
December 20, 2023
Solved

WC refund, overpayment, premium return received this Oct 2023, for last fiscal year policy period

  • December 20, 2023
  • 2 replies
  • 0 views

QBDT Premier 2024 Ed.

Being a new contractor business, we had to pay very high Workman's Comp premiums for the first year (2022).

Our audit for the WC policy was done this year in July (2023).  Because we had no employees most of the year, we got 2 separate "refunds checks" from the insurance company, both in October (2023).

How would I process these in QBDT Premier 2024?  They were deposited in the business checking account (in the real world).

Thanks very much for your help.

Best answer by Rainflurry

@victoriah1956 

 

The refunds can be recorded as a reduction in your WC expense or as income.  I think it makes more sense to record it as a reduction in WC expense.  The bottom line is the same either way.  Assign your WC expense account to the deposit and you should be all set.  

2 replies

S
SheandL
December 20, 2023

Hello there, victoria.

 

I understand the importance of being able to record these Workman's Comp premiums refund on your QuickBooks Desktop. Let me walk you through the steps on how you can do it.

 

Here's how:

 

  1. Ensure you put the refunds under the correct account where you've categorized the payments.
  2. Go to the Banking menu and choose Deposits. 
  3. In the Payments to Deposit window, select the payments you want to combine. Then click OK.
  4. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to drop-down.
  5.  Enter the required information to make the deposit and choose the appropriate category. I suggest seeking advice from your accountant for further guidance on the selection.
  6. When done, choose Save & Close.

 

You can also check this article for more information about the process: Record and make bank deposits in QuickBooks Desktop.

 

I have included an article that may help record payroll tax refunds: Handle a payroll tax refund from an agency in QuickBooks Desktop Payroll.

 

Feel free to let me know if you have any additional concerns regarding making deposits in QBDT. It's always my pleasure to assist you. Have a wonderful day!

Rainflurry
RainflurryAnswer
December 20, 2023

@victoriah1956 

 

The refunds can be recorded as a reduction in your WC expense or as income.  I think it makes more sense to record it as a reduction in WC expense.  The bottom line is the same either way.  Assign your WC expense account to the deposit and you should be all set.  

    AlcaeusF
    AlcaeusF
    January 4, 2024

    Hello Rainflurry,

     

    Thank you for sharing your input to help address the issue. We love to see members supporting one another! Have a great day.

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