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Workers compensation insurance
Workers compensation insurance provides protection for employees who suffer a job-related illness or injury. Entire cost is generally paid by the employer. Cost depends on how many employees a company has, accident history, risk factors associated with the job, etc.
Employer makes a payment at the beginning of the year using an estimated payroll figure for the year.
Debit - Workers' Comp. Insurance Expense
Credit - Cash
When end of the year comes, actual amount is figured and more is sent in, or a refund is given to employer.
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