California ETT Workers Compensation

Worker's Comp and the California Training Tax* are not taxes. They are not deducted from an employee's paycheck, therefore, they are Employer Expenses. You can easily set them up Employer Expenses:

  • Go to Payroll/Payroll Categories, and select the Expenses tab.
  • Click 'New' to create categories for CA Worker's Comp, CA Training Tax, or Workers Comp.
  • For Expense Basis enter the individual company's tax rate and the wages to which the expense applies, like Gross Wages.
  • For the Expense Limit calculate the Maximum tax, which is the rate entered above X the Wage Max. This is the Expense limit per year. For example, if the percentage rate is 1%, and the Wage Max is $7000, the Expense Limit is $70

Note: Because this is an Employer Expense rather than a "tax" this will not appear on the Tax Liabilities report