Everything you need to know to get started using QuickBooks Payroll

Get the Most Out Of QuickBooks Payroll Lesson #5: Processing Payroll Like a Pro Set Up Your Payroll Preferences QuickBooks Payroll knows that every small business is unique, so we've tried to build in as many customizable features as possible. Payroll preferences allow you to further streamline your payroll activities and display information in QuickBooks and on printouts the way you want to see it. For example, payroll preferences let you do everything from deciding whether to list employees in the Employee List by first name or last name, to hiding Social Security numbers in headers on reports, to renaming "Sick" or "Vacation" so they appear on paystubs as something else, such as "Paid Time Off." To set up your payroll preferences: From the Edit menu, select Preferences. Select Payroll & Employees from the list on the left. Then click the Company Preferences tab and choose your preferences. When you're done, click OK on the Company Preferences tab to save your preferences. Set your preferences for payroll. For more information, see the topic "Setting preferences for payroll" in QuickBooks Help. Or simply click Help when you are at the Company Preferences tab.

 

Use Payroll Reports

Reports in QuickBooks Payroll are a great way to view, track, and analyze your payroll or to prepare summaries for your boss or accountant.

To run a report:

• In QuickBooks 2006: From the Reports menu, select Report Center, then choose Employees and Payroll from the left menu. The Report Center is a convenient tool for learning about the benefits of each report and viewing a snapshot of what each will look like.
• In QuickBooks 2005 and 2004: From the Reports menu, select Employees & Payroll and then choose the name of the report.

For specific information about the report that you are currently viewing, go to the How Do I menu (on the title bar in the upper right corner of the report window) and select Learn more about this report. You'll find information about the data the report contains, which dates to use, and, if applicable, common ways to customize the report to get the exact data you need.

Modify Reports
Modifying a report allows you to configure it to show just the information you want to see, in the way you want to see it. In the report window, click Modify Report. Use the different tabs to customize your report. In the Display tab, you can indicate the columns you want to include in your report. In the Filters tab, you can limit the scope of the report. Select what you want to filter for from the list of filters, and then complete the fields for each filter. Each filter you select appears in the Current Filter Choices list.

Memorize, E-mail, and Export Reports
Memorizing a report lets you save your modifications for the next time you create this report. QuickBooks also lets you e-mail reports to colleagues, and export reports to Microsoft® Excel or to comma-separated value files that you can work with in other spreadsheet programs.

For more information about reports, see the topics "Getting the most out of a report" and "Memorizing a report for reuse" in QuickBooks Help.

 

Know How to Add a New Employee (or Edit an Existing One)

As new employees join your company, you'll need to add them to QuickBooks. You might also need to edit the information on existing employees' records, for example, when you give an employee a raise.

To add a new employee:

1. In QuickBooks 2006: Click Employee Center. In the Employees tab, click New Employee at the top of the list.
   In QuickBooks 2005 and 2004: From the Employees menu, select Employee List. From the Employee menu button at the bottom of the screen, select New.
2. Complete the Personal, Address and Contact, and Additional Info tabs.
3. From the Change tabs drop-down list, choose Employment Info. Fill out the information in the Employment tab.
4. From the Change tabs drop-down list, choose Payroll and Compensation Info. Fill out the Payroll Info tab.
5. Save the employee's record by doing one of the following:
   • Click Next to add another employee.
   • Click OK to close the window.

To edit an existing employee's record:

1. In QuickBooks 2006: Click Employee Center and then the Employees tab.
   In QuickBooks 2005 and 2004: From the Employees menu, select Employee List.
2. Double-click the employee record you want to edit.
3. Edit the appropriate fields, then click OK.

For more information, look in QuickBooks Help. Click the Index or Help Index tab and type employees.

 

Know How to Add a New Payroll Item (or Edit an Existing One)

Every time you change something in your business that affects how your employees' paychecks are calculated, you need to create a new payroll item. For example, let's say you start offering health benefits and you want to deduct your employees' contribution from their paychecks. You'd need to set up a new payroll item to track the health benefits deduction.

To add a new payroll item:

1. From the Employees menu, select Payroll Item List.
2. From the Payroll Item menu button, select New.
3. In QuickBooks 2005 and 2004: Select Custom Setup, and click Next.
4. Follow the onscreen instructions to enter the appropriate information.
   
   Important: It is very important that you choose the correct tax tracking type for Addition, Deduction, and Company Contribution payroll items. The wrong type could affect your tax calculations and cause you headaches later. If you are not sure what type you should select, consult your accountant or tax advisor.
   
   
5. When you are done, click Finish.

For more information, see the topics "Setting up a common payroll item" and "Adding payroll items" in QuickBooks Help.

 

Tips

Keep Your Payroll E-mail Address Current

QuickBooks Payroll sends periodic service announcements throughout the year, such as when there's an important payroll update or if your state has decided to change its tax rates. Keep your payroll e-mail address up-to-date to make sure you receive these announcements—and to ensure they go to the right person at your company.

To update your payroll e-mail address:

1. Make sure you are connected to the Internet.
2. In QuickBooks 2006: From the Employees menu, select Payroll Service Activities, then choose Update Payroll Account Information.
   In QuickBooks 2005 and 2004: From the Employees menu, select Payroll Services, then choose View/Change Payroll Service Account Information.
3. In the Update Information section, click Edit.
4. Edit your e-mail address.
5. Check your changes on the Account Information page, then click Update.
6. Review the Confirmation page, then click Done.

Intuit respects the personal nature of e-mail communication. Every effort is made to offer only information on products that may be of value to you and your business. If you have opted out of receiving marketing materials, QuickBooks Payroll will use this e-mail address only to send you important announcements that are part of your QuickBooks Payroll service.

Know How to Add Another Company to Your Subscription

Your QuickBooks Payroll subscription* allows you to process payroll for as many as three companies. To add another company to your subscription, refer to the following QuickBooks Knowledge Base article for your version of QuickBooks:

• QuickBooks 2006
• QuickBooks 2005
• QuickBooks 2004

*QuickBooks Standard Payroll and QuickBooks Enhanced Payroll only. QuickBooks Direct Deposit users with QuickBooks 2004 will need a separate QuickBooks Direct Deposit subscription for each company. Disk Delivery customers must contact QuickBooks Technical Support to add a company to an existing subscription. If you have QuickBooks Enhanced Payroll for Accountants, you may use your subscription to process payroll for as many as 50 companies.

 

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