Setting up payroll operations in QuickBooks is a relatively straightforward process. There are just a few steps. But be sure you have all relevant payroll information handy before you start.
- Click Edit, then Preferences. Select Payroll & Employees and highlight the Company Preferences tab. Be sure the Full Payroll button is active.
- Determine whether the default settings for Pay Stub & Voucher Printing, Workers Compensation, and Sick and Vacation are appropriate for you. If not, change them.
- In the middle of the main dialog box are several paycheck preferences. Make your selections here.
- At the bottom of the box, you’ll provide additional information that helps QuickBooks process payroll. Check/uncheck the visible boxes, and click on Employee Defaults.
- The Employee Defaults dialog box is complex, and you must complete it. Payroll Schedule, Pay Frequency, and Class are easy; simply click on the drop-down boxes to define. Click on the Taxes and Sick/Vacation buttons and select from options.
- At this point, there’s probably nothing in the two big boxes on the left. You’ll have to create payroll items. Click in the Earnings box under Item Name, then click on the arrow that appears. Click <Add New>. The wizard that opens will help you establish defaults for various pay types. Repeat until finished.
- When you’ve defined all pay types, click in the box below the Earnings box. Click on the arrow and on <Add New>. This wizard will help you define company contributions and deductions, as well as miscellaneous additions to paychecks.
When you’ve completed all of these steps, click OK to close Preferences. You’re now ready to start creating employee records, where you’ll use this information.
QuickBooks makes it easy to set up payroll, but it must be done with absolute accuracy. We can help you at every step of the way.
(The information above assumes you have an active payroll plan.)