Payroll Quick Books Payroll Features Calculates paycheck details

Payroll

Quick. Books Payroll Features • Calculates paycheck details – Gross wages, tax withholdings etc. • Tracks individual employees hours, rate of pay, sick and vacation hours used • Allows printing of paycheck on voucher checks with pay stub showing payroll information • Calculates, tracks and pays payroll liabilities • Prints forms 941, 940, W-2, W-3 and 1099 • Includes payroll tax tables for all federal, state and some local taxes 2/13/2022 Payroll 2

Setting up Payroll • Similar to setup of company file, very important step – Activate Payroll function using Preferences – Subscribe to payroll service – Setup payroll accounts in Chart of Accounts – Setup payroll items to be used in paychecks – Setup employees and default templates – If setting mid-year, enter year to date data 2/13/2022 Payroll 3

Activating Payroll Function • Edit/ Preferences – Select Payroll & Employees – Click on Company Preferences tab • Click Full Payroll Features • Click Assign one class per Earnings item 2/13/2022 Payroll 4

Quick. Books Payroll Services • Do-it-Yourself Payroll – Tools and tax tables available to businesses for managing their own payroll • Assisted Payroll – Payroll taxes, filing forms, W-2 forms done by Quick. Books, businesses can still control and manage their payroll • Complete Payroll – Submit payroll data by phone, fax, PC or online, Quick. Books will do the rest (with No Penalties guarantee) , payroll data can be easily downloaded back in Quick. Books file 2/13/2022 Payroll 5

Using Payroll Function • Payroll Setup – Deals with setting up payroll items and accounts to be used for payroll – Must subscribe to one of the Intuit’s payroll services (or use manual method) • Payroll Processing – After correct payroll setting, employees can be paid regularly, liability payments can be made and payroll reports can be generated 2/13/2022 Payroll 6

Payroll Setup • Setup Payroll accounts – Liabilities and expense • Setup Payroll Item list – Items for earnings & deductions etc. • Setup Employee Defaults – Common information for employees • Setup Employees List – Employee information including earning and taxes 2/13/2022 Payroll 7

Payroll Accounts • Liabilities Accounts • Expense Accounts – Federal PR Taxes – State PR Taxes – Other Payroll Liabilities – Union Dues Payable 2/13/2022 – Officer’s Compensation – Gross Wages – Benefits – Payroll Taxes Payroll 8

Payroll Items Type • • • Yearly Salary Hourly Wage Commission Addition Deduction Company Contribution 2/13/2022 • Federal Tax – – Federal withholding Social Security Medicare unemployment • State withholding tax • State disability tax • State unemployment tax Payroll 9

Add New Payroll Item • Lists/ Payroll Item list • Select New from Payroll Item at the bottom • Add New Payroll Item screen will appear – Select the type and click next – Use options to setup various items and enter appropriate information 2/13/2022 Payroll 10

Employee Paying Methods • Salary – Salaried employees are paid based on a yearly salary, that is, a fixed amount every month • Hourly – Hourly employees are paid based on number of hours worked and may collect overtime • For each type of method, vacation and sick pay is associated. 2/13/2022 Payroll 11

Items withheld from employee paychecks • Federal and State Income Taxes – Employee’s portion • FUTA: Federal Unemployment, Paid by Employer • SUTA- State Unemployment, CA Unemployment is paid by the employer • Social Security- Employee’s portion, Company portion (matches the amount paid by the employee) • Medicare- Employee’s portion, Company portion (matches the amount paid by the employee) • State Disability Insurance- Employee deduction • CA Employment Training Tax- An employer tax in California 2/13/2022 Payroll 12

Setup Employee Defaults • Lists/ Employee List • Select Employee Defaults from the Employee menu at the bottom – Use this window to setup payroll information common to most employees (pay period) – Enter additions, deductions and company contributions (order important) – Click Taxes on Employee Defaults screen to set federal, state and other taxes default – Set Sick/ Vacation template 2/13/2022 Payroll 13

Setup Employees • Lists/ Employee List • Select New from the Employee Menu at the bottom of the list – Fill in Address info for the employee – Enter Employee number and additional information – Click Payroll tab, enter Earnings items, and Taxes 2/13/2022 Payroll 14

Releasing/Deactivating Employees • When an employee is released, fill in the release date in the employee record, so as not to show up in the pay employees form • Deactivating allows you to remove employee from the list without removing the transactions 2/13/2022 Payroll 15

Payroll Processing Functions • To create paychecks – Employees/ Pay Employee • To edit/delete paychecks – Employees/ Edit/Void paychecks • To create payroll liabilities checks – Employees/ Pay payroll liabilities • To process payroll tax forms – Employees/ Process Payroll forms 2/13/2022 Payroll 16

Payroll Tax Forms • Form 941– Employer’s Federal Tax Return prepared quarterly • Form 940 – Employer’s Annual Federal Unemployment Tax Return • W-2 Forms – Wages earned – Taxes withheld • W-3 Forms – A summary of all the W-2 forms prepared after all the W-2 s have been printed 2/13/2022 Payroll 17

Agencies to Pay Liabilities • Internal Revenue Service or US Government • Employment Development Department (CA) • State Board of Equalization (CA) • Agencies will differ in other states. 2/13/2022 Payroll 18

Reports • Payroll Item listing – Reports/ Employee & Payroll – Payroll Item Listing • Employee Withholding report – Reports/ Employee & Payroll – Select Employee Withholding 2/13/2022 Payroll 19