If you’re new to QuickBooks Online, it can be a bit overwhelming to get everything setup the way you want and need it to be. Our quick guide here will help you with your initial QuickBooks Online payroll setup.
STEP 1: Turn On Payroll Feature
First, get logged into your QuickBooks. Go to the Employees tab and click Turn On Payroll.
Then drop down your company menu and click Payroll Settings.
STEP 2: Create New Pay Schedule
Now, click Pay Schedules.
We are going to create a new pay schedule, so click Create.
The pay period is the period between paydays. Fill in current payday information. Check the box if you want this schedule to be the default.
STEP 3: Create New Time-Off Policy
Now, we are going to create a new time-off policy.
You can change the category, etc to match your company’s policies. Accrual frequency is basically how the vacation or sick days or paid time off is earned. Maximum available is the maximum hours that any one employee may have in their “bank” of time off.
STEP 4: Deductions & Contributions
Next, we are going to set up deductions or employee contributions to be taken from their pay. Deductions would be things like wage garnishments or child support. Contributions are things like employer-provided health insurance or a 401-K plan.
Just select which of the two types you wish to enter and follow the directions. We won’t be going through this in detail in this post.
STEP 5: Setup General Tax Information
Next, we’ll deal with taxes. To start off with, click General Tax Information.
Fill in your company type for tax purposes along with your filing name and your filing address, if different from your business address.
STEP 6: Setup Federal Taxes
Now, we’ll set up federal taxes.
Input your Employer Identification Number (EIN), which you should get or have gotten from the Internal Revenue Service. Your filing requirements and deposit schedule should also be set up based upon information that you should’ve gotten from the IRS. If you have more questions about EIN’s, take a look at this PDF provided by the IRS.
STEP 7: Setup State Taxes
Next, we’ll set up for state taxes.
For this step, you need to fill in the boxes with your Wisconsin employer information. The top section’s information should come from the Wisconsin Department of Revenue. The bottom section’s information should come from the Wisconsin Department of Workforce Development.
STEP 8: Federal Form Preferences
Next, if you have a tax-preparer take care of your taxes or have another third-party designee as far as the IRS goes, click Federal Form Preferences. If not, you can skip this step.
Based upon your individual circumstances, fill in one or both of the boxes on this page.
STEP 9: Update Electronic Services
Next, you can click Update Electronic Services. Please note that you need to have completed payroll information and tax information before doing this. Also, you will be required to send in a fax to the IRS to finish the setup of these services. By clicking the button, you are authorizing QuickBooks to file and pay your taxes electronically.
STEP 10: Additional Business Information
You can also set up additional business information. If you want an additional person to be a contact for your business add them under Contact Information. If you have multiple locations, you can use Work Locations to set that up.
The form for adding a contact person looks like this and you just fill it out and hit ok:
STEP 11: Accounting Preferences
You can also change default settings for various things under Preferences:
For right now, we’re only going to concern ourselves with the Accounting Preferences.
The most important thing here is to set your checking account to whatever bank account that you want your transactions to go through. In this example, it is “State Bank Checking”. You can also customize various expenses on this screen.
STEP 12: QuickBooks Online Payroll Setup Complete!
Congratulations, you’re done! You’ve completed your first QuickBooks Online payroll setup.