How to do Payroll in QuickBooks

How to do Payroll in QuickBooks

In this article, you read how to do Payroll in QuickBooks and Payroll subscription. QuickBooks Payroll is acclaimed software for accounting that provides complete and comprehensive solutions for payroll.

From managing employees to paying taxes, QB payroll has got everything covered. Moreover, this software can be integrated with QB Desktop for better analysis of payroll data. Multiple subscription plans are available for making the service completely customized.

Read more about Payroll in QuickBooks- How to do Payroll in QuickBooks

Subscription isn’t automatically updated in QuickBooks 2014. Once a payroll subscription has been purchased, users need to activate it by going into settings. For activating payroll, users need to input the registered email address along with the product key. The product key is sent via email by Intuit. Users can also purchase payroll subscriptions from third-party QB retailers. Make sure to collect your product key while purchasing QB payroll from a retailer.

Intuit also provides an Automated Service Key/Disk Delivery tool to help users in acquiring their service key for QB Payroll. Users can log into the tool with a registered email and password. Once you log in, you can view the service keys for all your subscriptions.

Follow the steps given below to Activate QuickBooks Payroll Subscription

  • Select Employees from the top Menu then Click on Payroll.
  • Enter the service key you received from Intuit or QB retailer.
  • It would be a good time to add or import payroll files into the QB desktop. In case this is your first subscription to this service then click next.
  • Now Manage Service Key window will appear. Here, click on Add and enter your service key. Click on next.
  • Confirm the pop-up and click finish.

Once QB verifies your subscription, you will have full access to the service. Payroll service in QuickBooks renews automatically. Make sure to cancel the subscription if you do not want to continue with the service. For cancellation, Intuit provides a separate tool.

Manual Payroll: The Road Less Traveled

Users can manage payroll manually with QB. While QB Payroll automates most of the process, manual payroll can be time-consuming. On the other hand, manual payroll can be set up for free in QuickBooks. Small organizations can use this feature of QB in order to save a ton of money. Further, setting up manual payroll will still allow you to run analysis on this data through reporting. You can apply filters to templates before running reports. These filters can be saved in QB. In addition to this, users can also download customized and industry-specific templates for better analysis of payroll data.

For proceeding with manual payroll, users need to have a subscription to QB Desktop. Manual payroll can be enabled through all the plans of QuickBooks Desktop such as pro, premier, and enterprise.

Follow the steps given below to enable manual calculations and computations

Prior to setting up manual Payroll, it’s important for users to enable manual calculations and computations in QuickBooks.

  • Select Help from the menu. Users who can’t access their menu can toggle it by pressing the alt option on windows and the command on Mac. You can also press F1 to access the help menu in QB.
  • In the search box provided, make a search for “Manual Payroll”.
  • Upon completion of the search, you will be provided with various options. Among them select the option that says “Calculate Taxes for payroll, Manually.
  • A new window with an article about manual payroll will appear in QB.
  • Inside the article, click on the link titled “without payroll subscription.” This is a much shorter way of accessing the settings for manual payroll in QuickBooks.
  • Now, click on the link for Calculations Settings.
  • Here you will find the manual Payroll calculations link. Select the link and inside this article click on the link for “Setup my company file and the calculations manually.”
  • Set the appropriate desired settings for manual calculation and computation of payroll and hit ok.
  • Restart QuickBooks.

Once QuickBooks restaurants, you will be able to manually calculate and compute at least the payroll data. For automating payroll users would be required to purchase a subscription to QuickBooks payroll. QB payroll has other benefits such as an inbuilt tax calculator. Users can also purchase tax forms and envelopes. Further, QB Payroll automatically fills up all the tax forms. In addition to this, various payroll-specific templates can be found and downloaded for running reports.

Complications can arise while using manual payroll alongside a subscription to QB Payroll. It will behoove users to resolve this issue as it can cause substantial damage to their database. Further, there is a higher chance of encountering inaccuracy when using manual payroll alongside QB payroll. Also, users with an active manual payroll setting won’t be able to activate their subscription through the QB desktop.

Other complications can arise as the full payroll has not been activated yet. This can hamper the performance of manual payroll settings and tools.

For enabling full payroll in QB desktop, just follow along

  • Select the Edit menu. Click on preferences.
  • Select Payroll and Employees
  • A new window will appear. Select properties
  • Select the company preference tab from properties.
  • Select the radio button against Full Payroll
  • Apply and Save settings.

Cloud users might have to face a whole different set of complications. For one, many users may have to download their entire company file in order to activate manual calculations in QB. Users who have both their company files and software hosted on QuickBooks won’t have to face any such complications. You can contact your hosting provider for resolving any complications regarding altering settings in cloud-hosted QB. Avoid exorbitant costs by setting up manual payroll in QuickBooks. If you face any issues then get all the help by calling the QuickBooks payroll Consultant number.