In this video, learn how to identify the information you need before you can set up and process payroll. Payroll requires information about your employees, payroll taxes, and benefits you offer.
- [Narrator] Before you can set up payroll in QuickBooks you have to make a couple of decisions about it and you need some government related information to satisfy tax agencies. Before you hire people, you have to figure out how much you're going to pay them. That's their salaries or wages. You're also going to determine the benefits that you provide, like vacation, sick time, insurance and retirement. You determine how often you pay people, and you set up your pay period, end date, and the paycheck date. Keep in mind, you need time to process payroll after the pay period end date. So the paycheck date is going to be later than the pay period end date. Next, for your company you have to set up a tax identification number. If you have a corporation or a partnership. that will be an employer identification number. If you have a sole proprietorship, that would be your social security number then for your employees, for each one, you're going to need a W-4 form. That's the form where the employees specify their withholding allowances. You also will need an I-9 form, which will show whether they're eligible to be employees. And, you might need a state withholding form. Most states will use the federal W-4 form, but a few of them have their own. If you don't know what you need yet, Intuit has a website that can help. on this website, on the payroll tax compliance links web page, you can scroll down, until you see federal payroll tax compliance. You can click that. to get information about what you need to do to comply with your federal payroll taxes. And if you have taxes in particular States, you can click the link to get information on withholdings, unemployment tax, and more. Because this course applies to payroll that works with QuickBooks desktop software, you need to have your QuickBooks desktop software installed on your computer, your company file created, and you have to activate your payroll service key in your company file. Here's a help topic on how to do that. If you run into any trouble, contact Intuit support. with payroll decisions and information gathered and QuickBooks payroll activated in your company file, you're ready to get started with payroll.
Note: This course covers only the US versions of QuickBooks Desktop and Payroll.