QB Issue Resolution:

You can use the Workers Comp pay category you’ve used for the employee then add another earnings line in the payrun.
Here’s how:

  1. Click Employees from the left menu.
  2. Go to Employees tab and click the employee involve.
  3. Select Pay Rates from the left menu.
  4. Click Add under Addional Earnings Lines. 
  5. Select Workers comp for the Pay Category. 
  6. Enter other necessary information.

This should offset the amount you’ve deducted to the employee.

Resolution for Issue 'Processing Workers Compensation reimbursed Payments' available: Yes (Solved).
Source: Intuit Community forum.

Processing Workers Compensation reimbursed Payments: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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