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How to Calculate Salary in QuickBooks Payroll?

Calculate Salary in QuickBooks Payroll

Employee Salary Calculation in QuickBooks Payroll

For a business/company owner paying the employees correctly and on monthly basis is highly imperative. Payroll comprises remuneration, benefits and social security, medicare, and unemployment taxes. If you are not a payroll expert you will need help in calculating your payroll, paying your employees, and streamlining all the necessary tax payments.

You can calculate payroll on your own but is indeed a daunting task that diverts the mind from the core business priorities. Payroll becomes straightforward if you hire an accountant or payroll specialist.

The recommended way is to automate the process by making purchases of the full-service software or online payroll solution, such as QuickBooks Payroll.

The payroll services offer well-designed solutions for small business owners who do not require many features as larger companies. Intuit has specially designed certain tools like QuickBooks Payroll Calculator which is free and can be used to calculate employees’ payroll with the required information.

This is usually suggested for small businesses where the total number of employees is a maximum of 5. This is the best solution that will save time, and effort and enhance the accuracy of the output. As it is obvious that payroll is not a simple one-time calculation.

It includes complex processes to streamline the business that the owners are amid many other business priorities. In case you manage payroll on your own you can carefully track different charges and find an easy way out for you.

Steps to set up the yearly salary payroll item

  • Open your QuickBooks Desktop
  • Then click on the Lists menu
  • Now select the option Payroll Item List
  • Then from the drop-down menu click on the New button to create the new one
  • Click on the option Custom Setup and click on the Next button
  • Select the option Wage then click on the Next button to proceed
  • You have to click on the Annual Salary and then click on the Next button 
  • Now do select the payment type that is Vacation Pay or Sick pay
  • If you have any other specifications then they are marked as Regular Pay then click on the button Next
  • Write the name of the salary item so that you can easily identify it and again hit on the Next button
  • Click on the Expense account that is going to use for the wage tracking
  • In the end, click on the Finish button
  • If you want to add more salaries then you have to repeat the process.

For adding the new payroll item to the employee’s setup

In the employee’s setup, to add the payroll items the steps are as follows:-

  • In the QuickBooks, click on the Employees menu
  • Then select the option Employee Center
  • Now you have to double-click on the employee’s name
  • To click on the Payroll Info tab 
  • In the Item name columns, go under the Earnings box 
  • Click on the area that is shown blank
  • Then go to the drop-down arrow and then click on Salary item
  • Write the Employee’s Annual Salary.

Intuit Paycheck Calculator

Intuit has a tailored specialized tool known as a paycheck calculator that can be used to calculate paychecks for hourly or salary employees. It gives you quality output in a short while.

The calculator is very easy to use. You just need to enter your payment information of the employees and it processes automatically to give out details on the total amount to be paid and the total amount that will be deducted for taxes.

The calculations made by the calculator are error free and the latest tax tables. There are two different types of paycheck calculators.

Hourly Paycheck Calculator

With the help of the hourly paycheck calculator, you can automatically estimate the total pay on an hourly basis to the employees after taxes and deductions are concealed. You need to choose the hourly pay rate option to enter the number of hours worked and the gross hourly rate.

Salary Paycheck Calculator

When you choose the salary paycheck calculator it automatically estimates the total pay for salaried employees after taxes and deductions. You just have to select the salary pay rate option to mention the gross salary amount, and net pay is automatically calculated thereafter.

In case you are still facing problems in calculating or understanding the paycheck calculators you can contact QuickBooks Payroll support phone number. They are prompt in answering the queries and according solutions for the errors reported by the clients. You can also reach them through email id and live chat option.

FAQs

  1. What to do if the salary is different in each pay period?

    In this case, you have to do adjustments in the amount on every check that you create.

  2. Can I calculate salary based on an hour or week?

    Yes, there is the option to calculate salary hourly, weekly, and annually. This depends on the employee’s working terms that they are working on which basis so their salaries are calculated according to that.

  3. What are the ways to calculate the payroll?

    There are 3 ways to calculate the payroll that are as follows:-

    💠 You can hire an accountant to do the payroll
    💠 The payroll calculation can be done on your own
    💠 The process of the payroll can be done automatically with the help of the online or full-service QuickBooks payroll software.


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