What expense category does workers compensation come under?
There is no definitive answer to this question, as the correct expense category for workers compensation will vary depending on the business and the jurisdiction in which it operates. However, some common expense categories for workers compensation include:
In many cases, workers compensation will be treated as an insurance expense. This is because workers compensation insurance is typically purchased as a separate policy from other business insurance policies.
Another common expense category for workers compensation is labor costs. This is because workers compensation benefits are typically paid to employees who are unable to work due to an injury or illness. As such, the costs of workers compensation can be considered as part of the overall labor costs of the business.
In some cases, businesses may choose to categorize workers compensation under an "other" expense category. This is often the case when businesses have multiple expense categories that could potentially apply to workers compensation.