How To Set Up Employee Retention Credit In Quickbooks

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we attach to strict guidelines to preserve editorial integrity.

QuickBooks offers incredibly in-depth payroll features. This ensures proper payroll procedures and IRS tax compliance, but it also makes for a long setup process. Merely don't worry. We'll walk you through how to set up your QuickBooks payroll in 20 simple steps.

Using an former version of QuickBooks Pro? Save $100 when you upgrade to QuickBooks Desktop 2022.

Purchase QuickBooks Desktop Pro 2022 Now

How To Ready Payroll

Before you begin setting up QuickBooks payroll, there are three things you must have:

1. Enough Time
2. The Proper Documents
3. Your Payroll Service Key

Beginning things first. Make sure you have adequate fourth dimension to set up payroll properly. Here is a nautical chart QuickBooks created to give you an estimate of how much time you need to gear up your payroll:

Yous'll besides want to download QuickBooks' Payroll Setup Checklist and gather the proper documentation. Tracking downwards all of the information and gathering the documents may take some time, but having everything you need in ane spot saves you tons of time in the long run. (There is also a helpful Payroll Getting Started Guide if you want additional assistance.)

After you purchase QuickBooks Payroll, you should exist given a payroll service key via email. If not, call QuickBooks to receive your service central so you can begin setting up QuickBooks Desktop Payroll.

Now, sit down downwards with a good clamper of time, all of the documents you demand, your service fundamental, and a large cup of Joe. Nosotros're ready to go!

Step one: Enter Your EIN

To begin, get brand sure you've entered your EIN into QuickBooks. You nearly likely did this already when setting up your QuickBooks Desktop software, but just in case, go to Company>My Company and and so click on the Customer Information tab to make sure your EIN is correctly entered into QuickBooks. Click "OK" when done.

(If you don't accept an EIN, you may want to consider getting a business organization EIN, only you can as well enter an SSN if that's how the IRS identifies your tax filings. If you aren't sure which is improve for your business, consult your accountant or a business advisor.)

Step 2: Add Payroll Service Cardinal

Verify that your QB license number and EIN are popping up correctly. So click "Add" in the bottom left-paw corner.

Step 3: Enter Service Fundamental

Recollect that service cardinal we mentioned earlier? Enter that number at present and click "Next." Phone call QuickBooks payroll back up if you are unsure of your service key.

Step 4: Confirm Your Payroll Subscription

Next, yous'll need to confirm that you are adding a payroll subscription to your computer. QuickBooks will ask: "Exercise you desire to add together your subscription to this automobile?" Answer "Yep" to proceed.

Footstep 5: Download QuickBooks Payroll

On this folio, select the "Open Payroll Setup – I want to start right abroad" selection if you want to outset setting up payroll after downloading the software. Click "End" to download QuickBooks Desktop Payroll.

Step vi: Install QuickBooks Payroll

You lot should see a box like the i beneath pop up. This means that payroll has been successfully added and is now being installed. Wait while QuickBooks finishes installing payroll. This procedure ordinarily merely takes a few minutes.

Step 7: Restart QuickBooks

Once QuickBooks Payroll has been installed on your figurer, this warning box will pop up. Click "OK" and restart QuickBooks so that yous tin be sure that your software has been updated correctly.

Step 8:Select Payroll Setup Method

In one case you've restarted QuickBooks, go to Employee>Payroll Setup to properly configure your payroll. Outset, you lot'll be asked if your employees have previously received paychecks from your business. If the respond is no, yous'll also accept to determine whether employees need to exist paid today.

For our sample company, we clicked "No." A section popped up on the left with all the payroll setup sections we need to consummate. If yous're an existing business that clicked "Yep," your "Kickoff Paychecks" department will be replaced with a "Year-to-Date Payroll" section where you lot tin can add past paychecks and previous business history by following the payroll setup wizard.

Step 9: Select Company Setup Method

QuickBooks will at present ask you if y'all desire to use the "Typical new employer setup" or "Customer setup" method. For the typical new setup, "QuickBooks automatically provides all the payment types and benefits normally needed by new employers," while the custom setup adds the ability to customize your benefits.

QuickBooks advises:

Choose Custom setup if you need to set upwardly ill time, vacation time, or insurance benefits.

We are going to cull the "Typical new employer setup" method, but you can choose "Custom setup" and follow the setup sorcerer, or yous tin can go back and add together custom benefits at a subsequently fourth dimension. Select your setup method, and click "Go on."

Footstep 10: Update Employee Information

If you haven't added employees into QuickBooks, now is the fourth dimension. Click "Add together New…" in the lesser left-hand corner to get started.

If you lot have already added employees into QuickBooks, y'all will want to verify that their contact information and tax information are right. On the screen below, you'll see that QuickBooks puts a warning symbol next to employees with missing information and a red Ten next to employees that take an error in their data. To update or edit employee information, select the employee and click "Edit" at the bottom of the screen.

Footstep eleven: Enter Employee'south Contact Data

Begin past entering their contact information, including their legal proper noun, employee status, and address. And then click "Side by side."

Step 12: Enter Employee's Hiring Information

Add together your employee's hiring information, including their employee type, SSN, hire date, release date (if applicative), birth date, and gender. Then click "Next."

Pace 13: Enter Employee's Wages

Enter information regarding your employee'south wages. Information will vary depending on whether your employee is salaried or paid hourly.

If you chose the "typical new user setup" procedure, QuickBooks will already have auto-populated wage types like "double-time," "bonus," and "commission." Click on the items that utilise to your employee and enter the wage amount. If you are using the "custom setup" option, here is where yous can add together benefits like "vacation" and "sick pay." Click "Next" when everything looks correct.

Footstep 14: Sign Employee Upwards For Direct Deposit

If you desire to pay your employee via directly deposit, you tin can set up direct deposit here or you can come back and do so at a later time. Nosotros'll cover how to prepare up directly deposit in more particular later in this post, so for now, we're going to click "Next."

Stride 15: Enter Employee Revenue enhancement Information

Select the state in which your employee is subject to taxes. If y'all are unsure of the proper tax settings at any time, click the blue "Explain" hyperlink for more information. Likewise, reply whether or non your employee has lived or worked in another state while employed by you lot during the given year (ours is 2025 since nosotros're using a sample company). Then click "Side by side."

Step 16: Enter Employee's Federal Tax Information

Use your employee'south W-4 form to find and enter the following information: filing status, allowances, actress withholding, nonresident alien withholding, and Rent Act Exemption. Also select whether or not your employee is bailiwick to Medicare, social security, federal unemployment, and/or accelerate earned income credit.

Over again, click the blue "Explain" hyperlink at any fourth dimension for more information, or contact your tax advisor or a QuickBooks support representative for extra support. Click "Adjacent" when done.

Stride 17: Enter Employee's State Tax Information

Adjacent, enter similar information regarding your employee'south land taxation information. If your employee is subject field to any special local taxes (other than those listed in a higher place), y'all will exist prompted to add additional information. Click "Side by side" when this page is completed.

When you click next, y'all'll exist taken to a folio where you tin enter any additional state revenue enhancement information. Click "Next" when ready. Then click "Stop."

Step 18: Review Employee Listing

Echo steps 10-18 until all of your employees are successfully added to QuickBooks. Once yous're done, review your employee list and click "Continue."

Step 19: Create Paychecks

Next, you lot accept two choices: "Create Paychecks and Finish Tax Setup After" or "Continue to Revenue enhancement Setup."

The tax setup procedure varies depending on your business'south tax obligations and pay schedule. Yous tin can print and follow pace-by-step revenue enhancement instructions to complete this section. Or, you tin come dorsum afterward and add in your revenue enhancement information. For at present, we are going to move on and create paychecks.

Step twenty: View Payroll Center

You have now officially fix payroll! (Mostly.)

You may need to stop calculation your tax information in the hereafter, but for now, y'all can take pride in knowing your payroll is up and running.

At this point, I highly recommend taking a look at the Payroll Center to see everything that QuickBooks Payroll is capable of.

For example, in addition to letting you run payroll, QuickBooks also helps with payroll taxes. If you lot go to your Payroll Eye and click on the "Pay Liabilities" and "File Forms" tabs, yous can see all of the tax features QuickBooks helps with.

As you tin can see in the pictures for our sample company, the QuickBooks Payroll Liabilities center shows y'all how much yous owe in payroll liabilities, how to manage liabilities, adjust liabilities, and make payments on payroll liabilities. The File Forms middle shows you which forms to file and if they're due quarterly or annually, how to order taxation forms, east-file, and more than.

If y'all have any questions about the payroll setup process or your payroll liabilities, contact QuickBooks payroll back up or download the QuickBooks Payroll Getting Started Guide. Don't forget to check out the rest of our QuickBooks Desktop Pro 101 Series to learn how to run payroll, employ direct deposit, write and print payroll checks, and more.

Source: https://www.merchantmaverick.com/how-to-set-up-quickbooks-payroll/

Share this post