If you own a business, you understand how important it is to be paid. You must rely on your customers to ensure that you are paid on time and that you have enough money to invest in your business and pay your employees. If you’ve ever worked for someone else, you know how important it is for employees to receive their pay on time. In fact, paying your employees late is a bad work ethic regardless of the industry. It can even result in fines and other legal consequences, which you never want to happen. Here you will read about how to do payroll in QuickBooks online and if you want to know more about other topics like how to use the fixed asset manager in QuickBooks and QuickBooks inventory tracking then click on these links.
Fortunately, accounting software that enhances payroll capabilities has made it easier than ever to ensure that your employees are always paid on time. QuickBooks Online is one of the big names out there. Today, millions of business owners rely on QuickBooks Online to balance their books, track inventory, and perform a variety of other tasks such as payroll.
In this article, we will go over how to do payroll in QuickBooks online step by step. We will break down each step so that you can easily follow it, from signing up to setting up and running payroll through QuickBooks Online. There would be no need for prior experience!
What Do You Need to Run Payroll in QuickBooks Online?
Before you sit down and get started, there are a few materials you’ll need to gather in order to successfully and accurately set up and run payroll through QuickBooks Online. And why do we require each of the following items? You’ll find the answer in the following section, where we’ll go over when and how to use them.
- Employee Personal Information
- Employee Contributions
- Employee Salaries
- W-4 forms for employees
- Login Information for a Business Bank Account
- Forms for Direct Deposit Authorization and Voided Checks
- Basic information about your business
Aside from setting up QuickBooks payments for each employee, you could also take a few extra steps to ensure your payroll taxes are calculated and paid correctly. In addition to the items listed above, you will need the following information for this type of task.
- Account and withholding information
- EIN federal
- Workers’ Compensation Policy Details.
How to Set Up Payroll in QuickBooks Online?
Once you’ve gathered all of the necessary items for this step, it’s time to set up your payroll with QuickBooks online. This process may take longer than necessary depending on the number of employees in your company, so be prepared to take longer than necessary to input everything correctly.
Although the steps outlined below may take some time to complete for each employee, the good news is that they are all very straightforward and simple to follow, even if you have never set up payroll before.
Step 1: Sign Up for Payroll
The very first step to do is to sign up for QuickBooks payroll online. This is supposed to be easy and can be done right from your dashboard. From the menu on the left side of your screen, choose Payroll and from here, you can decide whether to set up payroll for your employees, workers’ comp, or contractors. In this article, we will click the Employees option to stick with our original purpose.
Next, select a QuickBooks Payroll subscription plan and from this point, you can choose either various features to get a plan recommendation from QuickBooks or your own plan. The price of plans will range from $45-$125 per month plus $4-$10 per month for each employee. QuickBooks users are eligible for a 30-day free trial before making any commitment.
Step 2: Input Basic Information to Set Up Payroll
To set up payroll, you must answer a few basic questions about your business, such as:
- Have you paid your employees for the year 2022?
- When is your next payday?
- What is the primary workplace location?
Step 3: Add employees
Now is the time to put all of your employee information to use so that you can set up payroll and pay them on time. After you’ve answered all of your company’s questions, you’ll be prompted to “add employees.” Personal information, pay rate, deductions, withholdings, personal details, and payment details will all be included.
Read also: How To Customize Expense Settings in QuickBooks Online
