How to create payroll in QuickBooks?

QuickBooks is online accounting software designed to help small businesses with their accounts and records. It is made to do the jobs of a normal book-keeper and then some. The software was developed by Intuit. Several features make QuickBooks a unique platform for account management, creating GST invoices, pay stubs for your employees, collaborating with your partners, etc. You also get banking support with it along with many other quality services. 

You can access your data from anywhere in the world with the help of your cloud that is given to you with enough storage capacity. Also, the security of your information is of prime importance, so QuickBooks provides you with password protection, firewalls, device location, and many more. 

You can create payrolls for your employees using the Payroll feature on QuickBooks Desktop or QuickBooks Online. This feature will help you with creating and managing the payrolls efficiently. Before you start with payrolls there is some information that you will have to get, from your accountant or your previous payroll provider. 

  • Company Info: You will need the companies bank account information for making direct deposits, electronic tax payments, etc.
  • Compensation and Benefits: this includes employee benefits such as hourly wages, bonuses, tips. Compensations like health insurance, retirement plans, leave/vacations, etc. Also, additions and deductions like such as cash advances, mileage, and travel reimbursements
  • Information regarding all your employees; their completed W-4 forms, their salary or pay rate, any deductions from their paycheck, pay schedule, etc.
  • Information regarding your employees’ bank accounts to make direct deposits and their routing numbers as well.
  • Tax Information: This includes your Federal Employer Identification Number (FEIN) and state agency ID numbers, Electronic Federal Tax Payment System (EFTPS) enrollment. Also, other information such as state unemployment, administrative or training tax rates, assessment, tax deposit schedules, and local or other taxes, if applicable.
  • Prior payrolls: This is important as QuickBooks monitors previous payrolls that were given to your employees to calculate accurately what this year’s payroll would be. For example, if the payroll is for this quarter then it’ll need payroll details from each paycheck.
  • Liability Information: For this quarter they need copies of each payroll liability check and thus, for each prior quarter of this year the requirement is the summary of payroll liability payments.

Now that you have all the information that is needed, it is time to set-up the payrolls. There are two kinds of payrolls:

Do it for You Payroll: This feature is available in QuickBooks Online Payroll Elite. This includes a walk through all the steps needs to set-up your Payroll, or you can choose to have one of the Intuit Full-Service Payroll Setup Experts do it for you if you find it tiresome. The walk-through feature is also available in Assisted QuickBooks Desktop, Online QuickBooks Payroll Core, or QuickBooks Online Payroll Premium.

Do it Yourself Payroll: This is also a similar set-up available in Basic or Enhanced QuickBooks Desktop version, QuickBooks Online Payroll, Intuit Online Payroll all of which also give payroll-setup walk-through.

A payroll subscription is there for those who are still a bit confused about which QuickBooks Services they are using. Using this you can upgrade or downgrade your subscription.

You can activate your Payroll Setup Wizard, for this first enable QuickBooks Desktop Payroll.

  1. Open QuickBooks Desktop.
  2. On top of the toolbar, you will see the Employee tab select it.
  3. Scroll down in the menu and click on Payroll Setup.
  4. Follow the instructions in the Payroll Setup Wizard.

Follow the above steps to activate QuickBooks Desktop Payroll Assisted. After the setup is completed you can contact the on-boarding team to activate your Payroll Software.

You can also set up the online Enhanced Payroll in QuickBooks, follow the steps:

  1. Select Employee from the Payroll menu.
  2. To begin the setup, click oh Get Started with Payroll.
  3. At last, enter your company and employee information.

If you are using a Mac then you can install the setup for Intuit Online Payroll Desktop version by following these steps:

  1. When you see the Employees menu then click on Add payroll.
  2. Now click on Try It Now to create your Payroll account. If in case you already have an account, then select Current Customer Sign In to your account.
  3. Go to the To-Do tab.
  4. Now select Complete Setup to finish the setup process. If you want to process payroll, select Run your first payroll.

To setup QuickBooks Online Payroll for all the other versions follow the steps:

  1. Select Employee from the Payroll menu.
  2. To begin the setup, click oh Get Started with Payroll.
  3. Now enter your company, employee, and tax information.
  4. Once the setup is completed, you will see a Run payroll button on your Employees screen.

Conclusion

All these setups are easily accessible to the user once installed on your device or run online. QuickBooks provides solutions to any of your issues through their helpline numbers 24/7.