Hi - a year later! :) 

I'm one who has to have the WC codes to report properly to our insurance carrier, as each code is billed differently. I found the 'fix' to the original question to be a great fit for my giant liability balance that was showing.  By "not affecting accounts," I was able to clear that balance, keep my codes and my sanity. :) 

Thus, by making your employees exempt, I feel you're not going to get the most out of your QB experience and its time-saving reports, as well as making payments easily.  You'll always have a minor adjustment to clear to your WC expense account at year-end, but the fix in this thread is working for me, now, as I learned it yesterday! :D  yay! 

I also learned that this method is the only way to clear credit card payments of the liability, and lower that balance at the same time!  So.. the long-time mistake by prior bookkeepers has led to an answer to a two-fold problem! 

I hope this helps you, too! 

T