Great job in removing the liability from your employee's paycheck, @CindyP3.
Let me shed some light regarding tracking the Workers' Compensation code in QuickBooks Desktop.
If the employee's code was set to Exempt upon the setup, then this won't create any liability.
However, if there's a specific code assigned to the employee and you need to change it Exempt on the paycheck, this needs to be done manually like what you did to the previous paychecks.
You can edit the employee's Workers' Compensation code to the accurate one. This way, it will take effect on your succeeding payroll transactions.
To learn more about managing Workers' Compensation together with modifying its rate, please scan through this link: Learn how to set up your Workers’ Compensation in QuickBooks Desktop.
I'll be around to provide more help if there's anything else you need. Keep safe!
