D E S K T O P PAY R O L LGetting Started Guide

D E S K T O P PAY R O L LGetting Started Guide

Welcome to QuickBooks Desktop PayrollQuickBooks Desktop Payroll gives you the tools you need to efficientlymanage your payroll. Because it works inside your QuickBooksAccounting software, QuickBooks Desktop Payroll is easy to set upand use. And because it's a subscription service, you can be sure thatQuickBooks Desktop Payroll is keeping you up-to-date with the latest taxtables, tax forms, and other regulatory changes that affect payroll.QuickBooks Desktop Payroll makes your important payroll activitieseasy:1. Pay employees easily1—Just enter time and let QuickBooksDesktop Payroll do all the payroll math: earnings, payroll taxes, anddeductions. Then pay your employees using free direct deposit orprint their paychecks from your computer2.2. Pay your taxes—QuickBooks Desktop Payroll tracks your payroll taxesand other payroll-related liabilities as you go and reminds you whenpayments are due so you can avoid late payments and penalties. Youcan pay taxes electronically with E-File & Pay3 or you can print checksfrom QuickBooks.3. File tax forms—If you have a Payroll Enhanced subscription,QuickBooks Desktop Payroll automatically fills in federal and moststate tax forms for you. You can file forms electronically with E-File& Pay3, or you can print them from QuickBooks. If you have a PayrollBasic subscription, you can generate tax reports and work with youraccountant to file.Nominal monthly fees apply. See current prices at ooks-payroll/.2Additional fees apply for direct deposit to 1099 vendors.3Federal and state forms and the E-File & Pay feature are available only to Payroll Enhancedsubscribers. Check for details and availability. You may needto register with tax agencies to use E-File & Pay. Payroll Basic does not include tax forms or E-File & Pay.1ii

Table of ContentsWhat’s in this guideTips for new employers2Getting started3Activate your Desktop Payroll subscription.3Set up payroll.3The Payroll Center5Paying employees6Create paychecks.6Set up direct deposit.8Manage employees.9Manage payroll items. 10Keep tax tables up to date. 11Paying taxes and other liabilities12Filing tax forms131

Tips for new employersIf you’re hiring your first employees, these tips can help you get started:1. W-2 or 1099? Do you want the work performed on company premises? Will you provide the tools the worker needs to do his or her job? Do you want to control the hours the person works?If you mostly answered "yes,” you probably want to hire a W-2employee, not a 1099 independent contractor. For more detailedinformation, see IRS Pub. 15-A ( Get your Employer Identification Number (EIN)Every business needs an EIN from the IRS for federal tax reportingand tax payment. It’s easy to apply (go to and search"Apply online EIN"). Many states also require that businesses requesta state tax account or identification number.3. Employee paperwork (I-9, W-4)Gather I-9 forms from employees to ensure eligibility to work inthe United States, plus tax-withholding forms such as the federalW-4 and equivalent state forms. (After activating QuickBooksDesktop Payroll, go to Employees Employee Forms for blank I-9sand W-4s.) Finally, the business must report employees to the statewithin 7 to 20 days of hire, depending on the state. (Check for the rules for yourstate.)4. Labor Law PostersWith even one employee, you are required by law to display laborlaw posters. Intuit makes it easy to stay up to date with our PosterCompliance Service Fees apply.5. Workers’ CompensationPay your workers' comp premiums automatically with payroll usingour Workers' Comp Payment Service ( workers' comp off your to-do list for the year! Fees may apply.2

Getting startedActivate your Desktop Payroll subscriptionIf you purchased QuickBooks Desktop Payroll in a retail store, install andregister QuickBooks. Then click Employees Payroll Install Payrollfrom Box.If you're already using QuickBooks without a Desktop Payrollsubscription, you can purchase and activate Desktop Payroll by going tothe QuickBooks Home page and clicking Turn On Payroll. (Alternatively,click Employees Payroll Turn on Payroll in QuickBooks.)In each case, provide your company information, including your EIN,and debit or credit card information for monthly fees based on thenumber of employees you pay (and the base service price, if you'repurchasing through QuickBooks).(If you purchased Desktop Payroll on the web or by phone, you receiveda letter with your Payroll service key. From QuickBooks, click Employees Payroll Enter Service Key and follow the instructions in the letter.)At the end of activation, QuickBooks Desktop Payroll automaticallyupdates your Payroll service key, downloads the latest federal and statetax tables and (for Payroll Enhanced only) tax forms, and opens thePayroll Setup wizard to guide you through setting up payroll.Set up payrollThe Payroll Setup interview guides you through setting up everything youneed to run payroll and pay employees, from employees’ information topayroll taxes and common compensation and benefits items.Payroll Setup is easy, and the interview helps you each step of the way.You should set aside 20 minutes to an hour.Tip: U se the checklist at tosee what information you’ll need to collect.From the Employees menu in QuickBooks, click Payroll Setup to startthe interview.3

1 Choose whether you’re a newemployer with no payroll history orwhether you have paid employees by anymethod during the current calendar year.Your answer lets Payroll Setup customizethe interview for your situation.2 Work through the steps,supplying requested informationand clicking Continue on eachscreen. If you don’t have someof the information you need,note it and come back to PayrollSetup to supply it later.Click any time you need to leave the interview.To resume Payroll Setup where you left off, go toEmployees Payroll Setup.Be sure to come back and complete the entire interviewto ensure that QuickBooks Desktop Payroll has allyour tax liabilities and payroll history (if any) correctlyrecorded.4

The Payroll CenterUse the Payroll Center to manage all your payroll-related activities. Toget there, click the Payroll Center icon on the QuickBooks Home page,or go to the Employees menu and click Payroll Center.From the Pay Employees tab, payyour employees by free directdeposit1 or by check. You enter hours,and QuickBooks does the tax math.From the File Forms tab, file federaland most state tax forms. QuickBooksfills in the information; you justreview and either file electronicallyfrom QuickBooks 2 or print and mail.From the Pay Liabilities tab, see whenyour tax liabilities are due and howmuch you owe. Pay electronically fromQuickBooks2 or print and mail checks.Click the Employeestab to add employeesand change employeeinformation.Manage your DesktopPayroll subscriptionand accountinformation.Get services like QuickBooksPoster Compliance Serviceor Intuit Workers' CompPayment Service.3Additional fees apply for direct deposit to 1099 vendors.Tax forms and the E-File & Pay feature for federal and selected state forms are only available with PayrollEnhanced. Check for available states. You may need to register with taxagencies to use E-File & Pay.3Additional fees apply.125

Paying employeesCreate paychecksUse the Create Paychecks area of the Pay Employees tab to pay youremployees.Click to set uppayroll schedules.1 Click to start creating paychecks. Or, if you havea payroll schedule, select the scheduled payroll inthe table and click Start Scheduled Payroll.2 Specify the check dateand pay period end date.3 Select the employees to be paid and enter hours for employees.When you click Continue, QuickBooks calculates the checks.6

Paying Employees4 Review the paycheck information. Tosee more details for any check, click onemployee name.65 Click to create thepaychecks.Click to print the paychecks or to print pay stubs.7 If you're using free direct deposit1 or another service that requiressending payroll information to Intuit, be sure to click Send to Intuit.1Additional fees apply for direct deposit to 1099 vendors.7

Set up direct depositBefore you can pay employees by free direct deposit , you need to tell ustwo things: where the money will come from (your bank account) andwhere the money will go (each employee’s bank account).1To start, go to the Other Activities area of the Pay Employees tab.1 Click to tell us about your bank account. We’llvalidate it by making two very small debits, whichwe ask you to verify. Allow 2-3 days.Then, go to Employees Employee Center to set up bank accountinformation for employees who want to be paid by direct deposit.2Select the employee from the list.3 Click to enter the employee’s bankaccount information for direct deposit.Note: Y ou can also set up independent contractors (1099 vendors) for direct deposit bygoing to Vendors Vendor Center. Payment is made when you write a check or paya bill. Direct deposit payments for employees or 1099 vendors require two businessdays to deposit.Direct deposit payments to employees are free; additional fees apply for direct deposit to 1099vendors.18

Paying EmployeesManage employeesWhen you use Payroll Setup, QuickBooks sets up the initial informationfor your employees, but during day-to-day operations, you’ll need toadd new employees or change information for existing employees.To start, go to Employees Employee Center.1Click add a new employee.OR Double-click an employeename to change informationfor that employee.Tip: Click to specify default settings you want to apply to all new employees.2 Complete the fields on each ofthe tabs. Use the Payroll Info tab toenter earnings items and deductionsthat apply to the employee.Don’t forget to click these tosupply direct deposit, sick &vacation, and federal, state,and local tax items, as needed.9

Manage payroll itemsWhen you turn on Payroll and when you use Payroll Setup, QuickBookssets up certain default payroll items, as well as any you specify, forearnings, taxes, and benefits, but during day-to-day operations, you mayneed to create new items or change existing items.To start, go to Employees Manage Payroll Items New Payroll Item(or View/Edit Payroll Item List). In most cases, you can use the EZSetup option.1 Select the type of payrollitem you need to add.2 Click to go to the next screen.The payroll item wizard guides youthrough entering the informationQuickBooks needs to set up thenew payroll item.103 When you’ve completed allscreens, click Finish.

Paying EmployeesKeep tax tables up to dateBy default, QuickBooks Desktop Payroll has automatic updates enabledso it checks for new tax tables, tax forms (for Payroll Enhanced), andpayroll feature updates each time you start.If you turn off automatic updates or just want to make sure you havethe latest, you can check for updates at any time.To start, go to Employees Get Payroll Updates.1 Choose whether to downloadonly changes and additions tocurrent payroll files (fastest) or todownload the entire payroll update.2Click to start the update.06/03/20173 Click when the download is complete and you’veread the description of the updates included.11

Paying taxes and other liabilitiesWhen you use Payroll Setup, QuickBooks sets up and tracks your accruedpayroll taxes and reminds you when payments are due. Use the PayLiabilities tab to add or change scheduled tax payments and otherpayroll-related payments like health insurance premiums or retirementcontributions.1 Click next to thepayments you want to make.Click to set up taxes you want topay electronically using E-File &Pay.1 You’ll set up a bank accountfor e-payments, and you may needto enroll in agency e-pay programs.2 Click to reviewpayment checks.Click to make changes to scheduledpayments, such as how you pay orwhen the payment is due.The E-File & Pay feature for federal and selected state forms is only available with Payroll Enhanced.Check for available states. You may need to register with taxagencies to use E-File & Pay. Many states require those who pay electronically to file electronically.112

Filing Tax FormsFiling tax formsIf you have a Payroll Enhanced subscription, QuickBooks automaticallyfills in federal and state tax forms for you. You can conveniently fileforms and pay taxes electronically with E-File & Pay1, or you can printand mail them. (If you have a Payroll Basic subscription, you cangenerate tax reports and work with your accountant on tax filings.Payroll Basic does not include tax forms.)1 Select a form and click toreview the form and then fileelectronically or print and mail.1Click to set up forms youwant to file electronicallyusing E-File & Pay.1Click to change how you file taxforms: print or electronically.Tax forms and the E-File & Pay feature for federal and selected state forms are only available withPayroll Enhanced. Check for available states. You may need toregister with tax agencies to use E-File & Pay. Many states require those who file electronically to payelectronically.113

Copyright 2017 Intuit Inc. All rights reserved.Trademarks and PatentsUnauthorized duplication is a violation of applicable law. Intuit, the Intuit logo, and QuickBooksare registered trademarks of Intuit Inc. Other parties’ marks are the property of their respectiveowners. Features and services within QuickBooks products may be the subject matter of pendingand issued U.S. patents assigned to Intuit Inc.Terms, conditions, features, availability, pricing, fees, service and support options are subject tochange at any time without notice.14Revised September 2017

Have questions or need help? R efer to the in-product Help in QuickBooks to getstep-by-step instructions on payroll tasks. C onnect with other users and experts at V isit tobrowse support topics or contact an agent. T alk to a trained QuickBooks expert near youif you need further help. Find one Hands-on,personalized assistance is available for free.

Welcome to QuickBooks . our Workers' Comp Payment Service ( Check workers' comp off your to-do list for the year! Fees may apply. 3 Getting started Activate your Desktop Payroll subscription If you pur