How to Use Auto-payroll to Pay Employees in QuickBooks?


So, you want to pay your employees by using an auto-payroll facility in QuickBooks? We will look into the stepwise process to turn the auto-pay feature on and then use it to pay employees with the help of the below write-up. There are series of steps and sub-steps involved in using this feature in QuickBooks, which are mentioned as below:

  1. Set of payroll-related tasks in QuickBooks
  2. Turning on or activating the auto payroll in QuickBooks
  3. Review of payroll preview summary.
  4. Printing of paychecks (if required)

Using Auto-Payroll in QuickBooks

Setting up of Payroll related tasks in QuickBooks

  1. First of all, set up the payroll in the QuickBooks
  2. In this step, set up your employees with salary and default hours.
  3. Now you need to set up one pay schedule for all your employees, you can do this by going to Payroll and then employees. Auto-payroll can’t turn on for multiple payment schedules.
  4. In the last step, you can create and run your first payroll.

Activation of Auto-payroll in QuickBooks

  1. First of all, you need to go to the Gear icon (settings) > Payroll settings.
  2. Now, you need to go to the Auto Payroll box and turn it on by clicking on it and clicking save.

Review of payroll preview summary

Once you activate the auto-payroll, you will start receiving an email with the subject ‘your QuickBooks Auto Payroll preview’ showing the total amount of the payroll paid to the employees. If after reviewing, you find something to change in employee payroll and click on Manage or change something in Auto Payroll.

Printing of paychecks (if required)

You can use the print Paycheck feature on payday for the employees who have not opted for the direct deposit feature.

Learn to do Payroll in QuickBooks Online

Frequently Asked Questions

How can I stop the auto payment run schedule?

Click on Employees > Payroll settings > choose pay schedules > now choose the payment schedule that you want to stop > click on stop under Pay Run Automation > choose to Delete and then save. This will stop the auto payment run schedule.

How can I resume the auto payroll after pausing it?

Click on Employees > Payroll settings > Pay schedules > select the payment schedule that you paused earlier > click on the resume button under Pay Run Automation.

How to make a one-time change in the auto-payroll?

Click on Payroll > Run payroll > choose to update auto payroll > now edit any of the paychecks as required and click on Done. You need to be aware that one-time change is not permanent and would not be active in the next auto payroll run.

How can I remove an employee from the Auto payroll run?

Click on Payroll > Employees and then click on employees that you wish to remove> now change the employee’s status from Active to Not on payroll or terminated and then click on Done.

Further Reading

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Steve Hale is a Content expert and Executive Editor with over 15 years of experience who writes original blogs on Bookkeeping. Hale writes optimized content for a range of clients about SEO, Bookkeeping, Quickbooks & Accounting. He was formerly the managing editor who used to oversee all aspects of the publication.

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