Payroll is a comprehensive document that details the employees’ wages, including deductions and benefits. Doing payrolls in Quickbooks has a number of benefits such as automatic reminders for payout day, easy calculation of taxes, organization of employee information, and more. Quickbooks offers different versions and even the basic version offers additional features for payroll maintenance. Like most other software, QuickBooks does not charge extra for the automatic payment of salaries.
A quick payroll process starts with entering the employer’s details and ends with the generation of payroll. Let us learn the five easy steps in using QuickBooks for small businesses with payroll.
First step: Entering Company details
As the first step of the process, open the “payroll tab”, present in the dashboard. Enter a few details such as the day, the next payment has to be made to employees(next paycheck date), the address where your employees work, the name of the person who takes care of payroll in charge of the company(In some cases, the founder), his contact number, and email address.
Second Step: Entering Employees’ details
The next category which needs to be filled is “Tell us about your team” and “Fill in your tax info”. For filling up “Tell us about your team”, a completed W-4 form from the employee is needed. The details that must be entered, include
- Date of hiring
- Date of birth
- Pay rate
- Details of deductions
- Bank account to which payment should be made
- Accumulated leave, Sick leave, and Vacation and pending amount
Third step: Entering company’s tax details
The next category for the payroll process is “Fill in your tax info”. It requires the following tax-related information
- Federal Employer Identification Number(FEIN)
- State withholding and unemployment account numbers
- How frequently tax needs to be paid to the IRS and state
- State tax rates
Also, if the employees were already paid salaries/wages in the same year, those details need to be added. Next, “the workers’ compensation policy” should be added and then, the bank account details of the employer should be added to integrate the payment with the employer’s bank account.
Also, the payments have to be scheduled for weekly, bi-weekly, monthly, or twice a month for each employee.
Fourth Step: Run Payroll
The fourth step in the creation of the payroll is to select “Payroll” and then “Run payroll”. After this, the type of payroll should be chosen as scheduled and unscheduled. Then the names of the employees, whose payroll needs to be generated, should be chosen. After this, the correct bank account, pay period, and pay date should be selected. The method of payment should be chosen as either a cheque or bank transfer. The number of hours worked should be added if required.
Fifth step: Finish Payroll
For Quickbooks online payroll, the next step is to select “Preview payroll”. Then, by clicking the “Edit” option next to the net pay of an employee, it can be previewed or edited. After editing, submit the final payroll by selecting “Submit Payroll”. For printing pay-cheques, select “Print pay-cheques” and then select “Finish payroll”.
Conclusion:
You should be now familiar with payroll generation in Quickbooks. Quickbooks offer efficient management of all tax-related details and thereby avoiding IRS-related problems. Using Quickbooks, employees’ payrolls can be organized based on their work, such as carpentry or masonry. Also, W-2 employees and freelance contractors can both be managed with the help of Quickbooks.
Quickbooks and payroll generation are inextricably linked as they are significant aspects of accounting. 904bookkeeping offers Quickbooks payroll services for business owners, which helps to keep track of pending payments, automate tax calculations, and manage employee records. The payroll services of Quickbooks incorporate time-tracking, assigning prevailing fringe rates, and certified payroll generation in Quickbooks and EEO reports. Quickbooks-certified payroll assists contractors in submitting reports to Government agencies for WH 347.
