Doing your own payroll is one of the best ways to save costs and efforts for business owners. Payroll process can take a lot of time, but when you’re equipped with a program to help you handle your payroll and make it easier for you to manage it. You can quickly set up and run the payroll in no time, if you are using QuickBooks Online. It has a separate specific feature for payroll. Though the process can be a bit lengthy but carrying out the steps can ease you to set up QB payroll with much ease. In this article, you’ll come to know about the information that you require and give you step-by-step instructions on how to setting up payroll in QuickBooks Online and process it with ease. However, if you’re seeking expert assistance then connect with the team of accountingguide.co via email or live chat.
Understand Payroll in QuickBooks Online?
It’s easy to pay payroll taxes and file tax forms for QuickBooks Online Payroll. QuickBooks Payroll Online calculates the federal and state payroll taxes for you automatically, and tells you when and how much you have to pay. For E-Pay you can write a check or pay your federal and state taxes electronically at no extra charge. Payroll for QuickBooks Online also fills out the new federal and several state tax forms automatically for you to print, sign and mail them. In addition, receive useful email updates to ensure your taxes and forms are still on schedule.
What are the different types of QuickBooks Payroll?
There are mainly three types of payroll solutions available which you can choose from as per your business requirements:
- Basis Payroll
- Enhanced Payroll
- Assisted Payroll
Information require to have handy for setting up payroll in QuickBooks Online
The number of staff in your organization determines the amount of time it may take to set up the payroll. So, you can schedule some bits of data to save some time, which will be beneficial to you during the setup process.
Below is a checklist of the data you can collect before starts the setup process:
Employer’s information required
- Bank account information: Collect the account number and routing number of the checking account for which you will make payroll checks, and also do the taxing process.
- Employee benefits: Employee benefits include the offerings to the employees apart from the regular facilities. This may include health and dental protection, paid leaves, retirement benefits, flexible working hours, paid leaves, flexible spending account, and others.
- Worker’s details: Collect the details of all the employees including pay rates, tips, hourly wages, rewards, commissions, other pay that you offer to your employees.
- Additions/deductions: This would include wage garnishments, cash propels, travel reimbursements, association contribution.
Employee’s information required
- Form W-4: When you sign a contract with a representative, then you need them to finish W-4 form that would give you their withhold information and other important data that would need to keep in mind while assessing their finance.
- Pay rate: The compensation you give to your workers must be listed here along with any incentive or commission.
- Leaves Allowed: When the company provides sick days or paid leaves, the data must be entered for every employee as well. It will assist in setting up the finances.
- Deductions/Additions: All kinds of additions and deductions will be covered such as retirement benefits, medical coverage, and employee garnishments.
- Pay Schedule: Set up numerous plans like week after week, every other work or month to month which would include that you pay your employees hourly or any other compensation.
- Direct Deposit Authorization Form: Some Organizations chose to provide a pay cheque to their employees; You can go for an easy option, however, which is the Direct Deposit Authorization Form. So, for this, you would need the direct deposit approval from the employee and other details to create the bank account and other route information to make the deposit.
- Hiring Date: Each employee’s hiring date needs to be entered. In case an employee has been hired on a contract basis, the contact dates need to be mentioned as well.
Steps for Setting up Payroll in QuickBooks Online
Now, you have gathered all the details and now you can move on to do the real work.
Step 1: Go to Employees Center
Initially, click on the Workers tab in the left menu bar
Step 2: Next, go to Payroll Setup
If you purchased payroll with QuickBooks Online membership, then it will take a moment for your screen. Tap the “Get setup” in the below screen and move further to next steps.
Step 3: Answer to the questions on the screen
You need to have all the relevant answers regarding the date that you run the QuickBooks Online payroll for the first time, paying the employees, and more.
Step 4: After that add employees
Now you have to add employees that you can find a particular tab for the same.
Step 5: At last, complete Information related employee
Complete all the related information such as employee withholding information, employee pay, pay schedule, payment method, enters year-to-date payroll information, employee deductions/contribution.
Once you complete all the relevant steps then verify once the information entered is correct or not. If everything is correct filled then hit the “Done” button.
So, this is how you can easily set up the payroll in QuickBooks Online and now pay your employees seamlessly.
Manual procedure to disable and use manual payroll in QuickBooks
QuickBooks enables the payroll feature, but in case the user wishes to turn off this feature, then it can be done manually. The steps involved in this process are as follows:
- First, go to Preferences tab that you find in the Edit menu
- Next, select the payroll & Employees option on the left side of panel
- Now, choose the option named “No Payroll” within the “Company Preferences” tab that helps to remove the function of payroll
- Afterwards, click the “Manage payroll” items to display the payroll item list from the employee’s tab
- Once done with that go to the “View or Edit payroll” item list
- After following all the instructions then click on the Payroll Item and then select the “New” option.
Connect with the team for further assistance
Carrying out the above steps can help the user in setting up payroll and also using it at its best. However, in case, you face difficulty while setting up payroll in QuickBooks Online, then you can reach out to the team via email at [email protected]. You can also fill up the customer contact form along with your query details and the team will get back to you soon or may take 2-3 hours with a resolution. For instant help, you can do a live chat as the service is available all round the clock, you can connect them at any point of time.