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Payroll is a hassle for small business owners who don’t want to spend all day on bookkeeping. It’s an essential component of recruiting and running a business, but that doesn’t mean it can’t be time-consuming and prone to error (unless you want extremely irate workers and a ton of litigation). Payroll software that saves sanity is fortunately available. We’ll go over how to process payroll in QuickBooks today to spare you the trouble (and legal liability) of trying to figure it out on your own and the numerous mistakes you might make. In this article, we will discuss about QuickBooks Payroll hosting.
How to do Payrolls in QuickBooks?
It is very important for you to do your own research and familiarize yourself with QuickBooks Payroll software. To use QuickBooks Payroll, you’ll require a payroll add-on or a stand alone QuickBooks payroll subscription. You can access some serious benefits like proper management, automated calculations etc, by using QuickBooks payroll hosting.
Additionally, you must confirm that QuickBooks has all the data required to process your payroll efficiently. This is mainly bank account information (for both employers and employees) and employee hours (input by you or them). For a basic overview, see our post on how to manage payroll if you’re new to the process and need some further assistance with those procedures.
Step 1: Go to Payroll
First go to the payroll tab available on the dashboard. It is present right on your dashboard but if you are unable to find it, you can check the setup guide from QuickBooks for a guide of your dashboard. If you are in the process of setting up your payroll services subscription plan, QuickBooks will now ask you for some additional information about your business (for example number of employees, working hours, and so on to help you in selecting a plan.
Step 2: Enter Year & Date Information
Now that you are all set with your payroll add-on, QuickBooks will require some information about your employees. It will start with whether or not you’ve sent out paychecks already in the past year. Now if you have already paid an employee in the past year, to keep your W-2 forms accurate, you’ll need some year to date payroll information. There will be a skip option so that you initiate this step later however make sure you do it there and then. This way you will prevent some serious headache in the tax season.
Step 3: Enter your payroll information
QuickBooks will then ask you to enter other payroll-related data. The software will first ask you for the date and whether payroll is planned or unscheduled. You will be prompted to submit information on an additional screen in order to enable future automation when you’re setting up a new payroll plan for an employee.
The majority of your employees’ working state will also be a question that QuickBooks will ask you. They are regarded as resident employees if that state is also home to your business. In addition to state unemployment insurance, QuickBooks will compute local and state taxes and make the necessary withholdings.
Things will get complicated if your employees are not residents of the state where your business is based. In such a situation, you’ll require some heavy research as to how you can initiate payments of non-resident employees. This is not such a big issue considering remote workers have increased severely in the past, there are many tips to get out of this problem.
Step 4: Add other employee data
Now the software will ask you to add the rest of the information related to your employees. This information will require personal data and some other questions for a particular employee. QuickBooks will now save this information for your future use. Below we are stating the information QuickBooks payroll will ask you so that you are aware of such information beforehand.
Personal Employee Information
- First and last name, plus middle initial
- Date of hiring
- Email address
- If they enter their own hours
- If you want them to be able to view their pay stubs and W-2s online
Payroll Schedule: If you only want to enter this once, make it accessible to all your employees.
- Frequency of paychecks
- Date of next payday
- Last workday of the upcoming pay period
- Pay schedule name
- Type of pay (hourly, salary, commission only)
- Pay rates
- Other types of payment/benefits (overtime, PTO, sick pay, vacation pay, etc.)
Deductions (if applicable)
- Flexible and healthcare spending accounts
- Loan repayments
- Information from an employee’s W-4
- Social Security number
- Other income, deductions and with holdings
- Direct deposit
- Paper check
Step 5: Double-check and Generate Paychecks
It’s now time for you to process employee paychecks. To view each one before making the final confirmation, select Preview Payroll. Even though Step 4 will automatically upload your employees’ information, it’s still vital to review each time to reduce the possibility of errors. You will also input and verify the hours worked by your hourly workers in this phase.
Step 6: Confirm
Now that all the steps have been done, select confirm. QuickBooks will see the rest for you. A final summary of each paycheck will be provided to you and will also be saved in your records.
Is QuickBooks a right choice for you?
If you are already a QuickBooks user for other accounting processes, using a payroll add-on is by far the easiest way that you can start doing payroll. You won’t have to worry about learning a new dashboard, a lot of information will be pre-added. QuickBooks is the perfect choice if you are looking for an automated payroll, tax filing, plus a direct deposit system.
When to use a QuickBooks Alternative?
Even though QuickBooks is the best option in the market, there can be situations where it won’t be the perfect choice for someone. Don’t worry! There are still many choices available which can be an alternative to QuickBooks payroll software. If you have a lot of international employees, require a lot of built in tools or are looking for a professional employer organization. You should check other options out too. There are plenty of options which provide a free trial too.
When it’s about automated payroll, QuickBooks is the perfect choice for you. It comes with a straightforward approach, it keeps your information saved so that you don’t have to add it again and again. The software is easy to use and intuitive. Especially, if you use QuickBooks for other purposes already, it will be easy for you to operate QuickBooks. It will be easy and seamless for you to use rather than complex accounting software.
Frequently Asked Questions (FAQs)
Q. Is there a tutorial for QuickBooks payroll? If yes, where can I find it?
Ans. If you like to learn through the visual department, there are many tutorial videos available for QuickBooks Payroll. The most recommended tutorial of QuickBooks is given by the original source Intuit. The tutorial gives you step by step visual instructions with the most up to date version.
Q. Is it important to update QuickBooks Payroll?
Ans. Payroll software is regularly updated by QuickBooks, so don’t be shocked if you get notifications. These updates are frequently significant since they typically contain security patches and enhancements to the software itself, as well as recent modifications to tax forms and rules.
Q. How can I set up payroll on QuickBooks Desktop Version?
Ans. Payroll is configured similarly in QuickBooks desktop and online versions:
- Navigate to Payroll and enter current year data.
- Input payroll data.
- Enter additional personnel information.
- Verify again and produce paychecks
Q. How do I certify payroll in QuickBooks?
Ans. Once you’ve completed your regular paycheck in QuickBooks, you may easily complete any required certified payroll reports: Make sure to enable macros before proceeding to Reports > Employees and Payroll > Additional Payroll Reports in Excel > Certified Payroll Report. When prompted, provide the extra details required to create your certified payroll report.