How to Set Up QuickBooks Payroll Successfully?

Nowadays, QuickBooks is a powerful tool that has been used by millions of small businesses to help them handle their accounting tasks. If you are one of them and you are looking for ways to use this software option effectively, then this article is for you because we would introduce to you a complete guide on how to set up QuickBooks payroll.

An Introduction to QuickBooks

No matter what the case is, QuickBooks has been considered a leader in the industry thanks to its feature-packed software to help businesses balance the books, track their expenses, and pay their staff.

And of course one of the most outstanding features of QuickBooks is its payroll. This software allows your business to have a quick and easy paying process for your employees on time for each pay period and not only that, at the same time it provides additional helpful functions to your company such as calculating the payroll taxes and filling in tax forms.

Unfortunately, the price of your license or monthly subscription fee for QuickBooks Desktop doesn’t include payroll. It will cost users an additional fee for an add-on QuickBooks Payroll feature. Depending on the plan you opt for, you will have to pay from 29 to 109 dollars a month plus an additional fee of 2 dollars per employee (based on your chosen plan, it’s either per paycheck or per month). However, the good news is that you can experience a 30-day trial for free before making any long-term commitment.

Once you finish signing up for a subscription with QuickBooks Payroll, it can be easily accessed through your QuickBooks Desktop dashboard without any download required. This way you can start setting up and processing your payroll within a few minutes.

In this article, we will introduce to you how to set up QuickBooks payroll step by step as well as help you gather proper documentation to do business payroll successfully.

First, let’s get started with what kind of elements you need to run in QuickBooks.

What Do Businesses Need to Include in QuickBooks?

Before you even start with the software, you need to gather the necessary information and documents to make the process of setting up QuickBooks payroll become as quick and easy as possible. Then later on in this article, we will walk you through every step to make sure you know how to set up QuickBooks payroll smoothly.

Form W-4s: You need a completed and signed W-4s form of each employee.

Basic employee information: basic information for each employee, including their legal name, birthday, address, hire date, and termination date.

Pay rates: Enter the employees’ wage in the section: “How much do you pay your employees?” and input the default number of their working hours in a day or a week.

Pay schedule: Specify a pay schedule for your staff by going to the “How often do you pay employees” section and choose the “create pay schedule” button.

Deductions: You should know the type of deduction and the number of certain deductions in case your employees have them. Some common types of paycheck deductions are wage garnishments, health insurance premiums, and retirement accounts.

How To Set Up QuickBooks Payroll?

Sometimes it can get a bit confusing for those who want to know how to set up QuickBooks payroll but below would be a step-by-step payroll set up to walk you through it effortlessly.

If you are not confident about running your own payroll, you can always practice using a sample company to practice and test it out as we used in this guidance.

You can follow these basic steps below whether you are using a sample or your company file.

Step 1: Open QuickBooks Payroll Set Up

After gathering all your information, it’s time to get started with the first step, which is opening the QuickBooks payroll setup tool. This could be done by clicking on “Employee” at the top bar on your QuickBooks screen, then choose “Payroll Center” in the dropdown menu and look for the “Payroll Setup” option.

Step 2: Set up Compensation

When you have opened the Payroll Setup tool, the very first thing to do is enter and confirm information related to your company’s compensation and benefits.

There are several options for compensation that your business can consider using, including:

Overtime Rate: The paying for employees from working overtime

Regular Pay: The amount of money that employees get per hour

Salary: This is used for staff that receive a salary every month

Bonus: Bonus payments for employees

Mileage Reimbursement: This would be used if you reimburse your staff for miles driven.

There are three options in this menu but you can delete any compensation type if your company doesn’t use it and at the same add additional compensation that is on your lists. A great thing is you can choose to edit entries and change what kinds of compensation are shown on paychecks, select the account type, make the payroll item active or inactive, and change the account name.

To confirm these entries, click “Next” and you will move on to the next step.

Step 3: Set Up Employee Benefits

The third step is to add and edit benefits provided for your employees. You also need to add pay options (like cash advances or mileage reimbursements) and deductions (such as wage garnishments).

When you have added all of your compensation, additions, benefits, and deductions, it’s about time to add the numbers for each employee.

Step 4: Set Up Employees

Remember all the documents and information we remind you to repair earlier? Now would be the time to make good use of them.

Personal information

To set up a new employee, start by the “Add new” button and fill in all the required information including legal name, birthday, gender, employee type, contact information, hire date.

W-4s and pay rate information in the Quickbook setup process

Pay Rates and Schedules

Next, you will need to fill in the pay rates and working schedules of employees. Don’t forget to sell overtime rates, a bonus, health insurance costs, or mileage reimbursement.

The input also should include how sick pay is calculated, how many hours of sick pay is allowed, when these hours start (for example at the beginning of every year), when will happen in case of unused sick hours, and current balances. The same way would be applied for vacation pay.

Source here: https://store.magenest.com/blog/how-to-set-up-quickbooks-payroll/

#how_to_set_up_quickbooks_payroll

#magenest_store

#mageneststore