QuickBooks has become popular among small and midsize businesses. Aside from it being accessible, small businesses find it helpful in running their payroll. It is an accounting software that caters to the financial tasks of small businesses, in short, it is primarily designed for small businesses.
How to Run Payroll in QuickBooks
Running your payroll in QuickBooks requires you to set up your payroll preferences first. First, you are to locate the edit menu, select preferences, and click on payroll and employees. Following this step requires you to enter your payroll information. Your payroll information includes your payroll schedule, pay periods, and employee information.
Setting up Employees in QuickBooks
To set up employees existing in the business on QuickBooks can be done by accessing the employee center on the dashboard and clicking the new employee. Then you’ll be required to enter the employee’s name, address, and other relevant information. Employees’ pay rates, benefits, and other payroll-related information will be set up.
Once this is done, the process for setting up employees on QuickBooks is achieved. What is left is to locate the ‘payroll center’ and click on start payroll. This allows you to select the pay period and the employees you want to pay. Additional pay, such as bonuses, overtime, and others can be added.
Calculating Taxes and Deductions
To calculate taxes and deductions for each of the employees, there are steps to follow. Paying tax is essential for maintaining a good reputation and avoiding penalties. Setting up an employee’s account allows the software to calculate the tax deductible for each person. This can be reviewed in the summary to ensure that everything is accurate. Adjustments and corrections can be done before the payroll is finalised.
Finalising payroll will give the opportunity to create payroll checks or direct deposits. This is solely dependent on the kind of payment method that you choose. Finalising the payroll also requires that reconciliation with payroll liabilities is done, including the payment of payroll taxes and other deductions.
Payroll Sample on QuickBooks
To better understand this, let’s take this example. This example is going to use a small business employee in the illustration.
JOLLI CAKES has an employee named Jessica who earns N3,000,000 annually. Jessica receives her pay biweekly, and her pay period is from January 1 to January 15. Jessica’s employee information has been set up in QuickBooks, including her pay rate and benefits.
When the business runs payroll from January 1 to January 15 pay period, QuickBooks will calculate Jessica’s gross pay, payroll taxes, and deductions.However with time, JOLLI CAKES decides to use a payroll system that is more efficient and seamless.
Stumbling on WorkflowsHR software which provides affordable pricing methodology, protection of payroll information and operational efficiency, the business now runs on full speed promising and maximising productivity.
