QuickBooks Payroll helps business owners to save costs if done in the right way. Though QuickBooks Payroll can be set up easily, there’s a meticulous step-by-step process that needs to be adhered to. You can add Intuit Payroll to your QuickBooks Online subscription, there are numerous benefits like tax preparation, support for payroll setup for your firm, and direct deposits on the same day.
QuickBooks Payroll Setup – What’ll You Need?
Business bank accounts and routing number which is connected to the bank account which is for business transactions. Plus, there should be information on hourly price and salary information which offer different benefits to employees, including retirement plans and health insurance schemes.
Here’s the detailed list of what you’ll exactly need:
1. Information of bank account: Routing number and account number of the checking account
2. Tips: Different account for payroll apart from the one used for daily operations
3. Compensation of employees: All the payments made to employees including wages, salaries, bonuses, commissions, or different rewards offered to employees
4. Benefits of employees: Insurances offered to employees, retirement plans, vacation/sick leave policies, and other spending accounts.
5. Miscellaneous: Union dues, vouchers, reimbursements, cash advances and more.
How to Set Up QuickBooks Payroll in Easy Steps?
Here we will find out how QuickBooks enhanced payroll service can be set up easily:
- Go to the Employee Center
- Proceed to the Payroll Setup
- Respond to Questions Regarding Before Payrolls
- Add your Employees
- Complete Information of Employees
These are the field required to be completed for employee information:
- Information for Employee Withholding
The above information comes from Form W4. After clicking the edit section, a form will be displayed which can be filled.
- Schedule of Payment
From the dropdown menu, choose the employees’ payment schedule.
- Payment of Employees
Wages of the employees need to be entered in the field below.
- Deductions and Contribution of Employees
Deductions and contributions of the workers must be carried as per the instructions.
- Method of Payment
From the drop-down menu, you can either choose the Live Check option or Direct Deposit option. After selecting direct deposit, banking info of the employee can be entered right from the direct deposit form of authorization.
- Enter Information of the Payroll
If the employee is paid in the current year, the year to date data should be entered from the previous payroll check got out of the old system.
How to Run QuickBooks Payroll?
Once QuickBooks Payroll has been set up, it is time to run it. Here are the steps to run QuickBooks Payroll:
1. Go to the Employee Center
On the left bar menu, click on the “Employees” tab.
2. Select “Run Payroll”
You will get an employees’ list from the Payroll Dashboard which was set in the previous section. After that, select “run payroll” on the right-hand upper corner.
3. Payroll hours must be entered
For all the employees who work on-hour basis, all their hours must be mentioned. Also, other information must be reviewed to verify accuracy.
The other information which needs to be reviewed:
- Bank Account
The account used for taxing and checks for payroll appears in the field. In case the account appears, choose it from the drop-down menu.
- Period of Pay
The payment period that was set in the previous section gets populated by this field. As was the case with the bank account, this too can be chosen from the drop-down menu if it doesn’t appear in the field right away.
- Date of Pay
The date when your employees are being paid. If this is incorrect, this can be edited out.
- Number of Hours Worked
For all the employees working on-hour basis, the number of hours worked for the current pay period must be mentioned.
- Salary Employees
By default, the final payment will be calculated based on the yearly salary entered for the employee.
- Payment Total
This field is the gross payment comprising of all employees for the current payroll.
4. Reviewing and Submission
If you’re okay with everything, select the ‘submit’ option at the bottom of your screen.
There will be prompts available on the screen. This will be a guide if you want to print your checks on the payroll. Also, the advice for remittances of direct deposited can be printed.
Once you have set up your QuickBooks Payroll effectively, it still needs to get paid first. With each running payroll, QuickBooks automatically computes the total of payroll taxes which you have to interact on your business and employees’ behalf. The most important point is that before the tax deadline, you must fill and file your forms and taxes by using QuickBooks Payroll.
Though setting up QuickBooks Payroll is easy, it may have many complications if things aren’t done right. An Intuit authorized QuickBooks Solution Provider as Apps4Rent helps you in setting up your payrolls right. Also, you can setup QuickBooks on the cloud which can help you with anytime anywhere access. Choose Apps4Rent to make your QuickBooks experience delightful and easy.