What Is Workers Compensation?

What is Workers Compensation? Clear definition, payroll examples, and how Workers Compensation appears on your paystub.

Where You'll See Workers Compensation

• On your paystub (earnings statement) under earnings, deductions, or taxes
• On your annual W-2 form (or 1099 for contractors)
• In payroll software (ADP, Paychex, Gusto, QuickBooks)
• In employer payroll reports and IRS filings

Generate a paystub showing Workers Compensation clearly with our free paystub generator, or browse the full payroll glossary (44+ terms explained).

This paystub generator is a simulation/mockup tool for personal record-keeping and verification purposes only.