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How to Setup Payroll in QuickBooks Online?

Intuit offers various QuickBooks products, and QuickBooks online is one of them. The software was created specifically to cater to the needs of small and medium-sized businesses. In the below article, we will discuss how to setup the QuickBooks payroll software on QuickBooks online platform.

Uses of QuickBooks Payroll in QuickBooks Online?

QuickBooks payroll integrated with QuickBooks online offers a number of features through its different kinds of plans. Some of those features are as follows:

  • Automatic payroll runs.
  • Calculation and filing of payroll taxes.
  • Leave tracking, health & retirement benefits tracking, etc.

How to setup Payroll in QuickBooks Online?

You can refer to the below steps to set up the payroll in QuickBooks Online:

  1. First of all, you will have to update the employer and employee information in the QuickBooks:
    1. Employer’s information would include Bank account information, worker’s details, employee benefits, additions/ deductions, etc.
    2. Employee’s information would include pay rate, adjustments, Form W-4, pay schedule, leaves data, Hiring date, direct deposit authorization form.
  2. Now for setting up QuickBooks Payroll, click on Employee center>then worker’s tab > proceed to Payroll setup. Refer below screen image:
  3. Now you will have to respond to the various questions regarding the previous payroll.
  4. Now in this step, you will have to add employees,> complete Employee information (pay schedule, employee’s pay, deduction, payment method, YTD payroll information, withholding tax info, etc.) > And verify all the information.
  5. Click on Done to successfully finish the setup.

Frequently Asked Questions

Can you confirm the cut-off time for QuickBooks Payroll?

Cut off time for QuickBooks payroll is 5:00 PM PST, 2 business days before the payday.

How to pay payroll taxes through QuickBooks Online?

You do not need to do anything; QuickBooks payroll will deduct the payroll taxes automatically from your bank account.

Can you explain what is W-2 Employee form and what it is used for?

The W-2 employee form is used for reporting employee’s gross wages earned, tax withholdings, the form is issued to the employees.

Can you throw some light on different kinds of payroll plans available in QuickBooks Online?

  • Basic: Pays employees through checks and direct deposit, does not handle payroll taxes. It costs $20.30/month + $2 per month per employee.
  • Enhanced plan: A Do-it-yourself plan for payroll processing and tax filing through QuickBooks. It costs $45/month +$2 per month per employee.
  • Assisted plan: Helps in automatic payroll runs and files the payroll tax return for the business. It costs $109/month +$2 per month for every employee.

When will the payroll deposit check get cleared?

It takes usually, around two business days for deposit check clearance, but sometimes it can take a long time depending upon circumstances.

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