The QuickBooks payroll users can easily enter the pay checks which have been issued before they are using the payroll services. When we try to enter historical payroll data in QuickBooks, you must be sure that right year to date total on a paycheck then you should write for the whole year.
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It is difficult to enter Employee’s Prior Payroll information in case if QuickBooks Online is not processed payroll prior but in case if you have already paid employees throughout the current calendar year then no issue will arise. The information related to historical payroll can be added to both QuickBooks desktop and online.
Need of Entering Historical Payroll
Following are the needs of entering Historical payroll
- It is important to enter historical payroll in QuickBooks Online or Desktop in case if the transitioning from another payroll solution is done to Intuit QuickBooks.
- By entering historical payroll, it is very useful in the time of payroll and tax reports to check whether all necessary information is there or not.
- In case if you have taxes, which are collected prior to utilizing QuickBooks, then it may be crucial for you to ensure that QuickBooks will pays the taxing authorities so that you do not incur any penalties for incorrect or late tax payments.
How to Enter the Historical Payroll Data in QuickBooks Desktop
The users can enter the historical payroll data very easily, at the outside of the QuickBooks Payroll Setup page. Be ensure that the date which you provided for the year-to-date pay period in your QuickBooks account comes immediately after the date which you enter for the earliest QuickBooks Payroll Date.
Let’s Learn it with the Help of Example:
In case, you are not able to submit YTD records that are dated after 5/30/2009, you have to add the date 5/30/2009 as your Earliest QuickBooks Payroll Date.
Now you can use the Payroll Setup window to apply all the entering previous payroll data in QuickBooks.
The users must use a different technique in order to enter the previous payroll data outside of the Payroll Setup interface. In order to understand the process and submit payroll information from past years, you must follow the following steps which are given below:
- First you have to follow the following steps to get the “Setup YTD Amount” screen:
- Navigate to the menu and then select “Employee” from it.
- Now you have to select “Payroll Setup” from the menu.
- From the menu click on the “Set up YTD Amounts“.
- Once you are done with the process for both YTD and tax payments then you can easily “Set up YTD Amounts” as the page has opened.
- With the help of above steps only you can determine which document you’ll need to enter your YTD history.
- Once you are done with all the above steps successfully, you can hit the “Next” button and then you can jump to the other step.
- In the estimated first paycheck, date should be included in both the date fields.
- When you are asked to enter the date on which you want the YTD summary to affect the accounts.
- Hit the next button in order to jump to the other page.
- Now you can include the anticipated first payroll date.
- Navigate to the menu and hit the “Next button” from the menu.
- In case if you are getting trouble in adding the current quarter’s YTDs then it will automatically adjust to a later date.
- Once you are done with all the above steps, then it includes the “YTD” summaries for each employee.
- Following is the Review of the YTD summary information:
- First you have to select the employee from the list.
- Navigate to the enter summary option and select it.
- The “YTD Adjustment” page will open.
- Now you will find that the YTDs are contributed per payroll for each employee for the current quarter, while they were added as a lump sum for earlier years.
- From the top right corner of the page you can easily change the dates.
- In the Earning items box select the wage information.
- Now you have to add the sum for deductions, additions, tax deductions, and corporate contributions in the “Other Employee and Company Payroll Items” column.
- Once you are done with the above steps, you can add a column and select “Show Wage Bases” as per your requirement.
- By doing the above step, the total of taxable income can be shown next to each payroll item.
- The sum will be shown in the section titled “Other Employee and Company Payroll Items.“
- Now navigate to the Accounts Affected option and select it.
- You may also want to explore that how you would like the YTD change to impact the account by selecting the “Accounts Affected” option (Chart of Accounts). Let’s look at some of your potential options:
- If your account has the correct balances, then you may select the option that says “Do Not Affect Accounts.“
- In case if the checking account balance is accurate, then you can choose the option that says “Affect Liability and Expense Accounts but Not the Bank Account.“
- The detail won’t be show up in your bank register, choosing this option can result in YTD changes.
- When no account balance is accurate, then you can choose the option that says “Affect Liability, Expense, and Bank Accounts.” By selecting this, the YTD adjustment will be displayed in the empty register.
- Once you have completed the first entry then select “Next Period” to move on to the next entry.
- Follow all the above process until you have finished all of the employees.
- Once you are done with all the above steps then don’t forget to hit the “OK” button in order to save the actions which are performed.
- This will help you to use the same procedure on each employee.
- Now you can adjust the “First Payroll Date” before to a later date and try again if you don’t see the “Pay Period Summary” on your screen the first time.
- When you have finished filling out all of the YTD entries.
- Hit the “Next” to close the “Employee Summary Information” page.
- In the starting of a calendar year, you have the option of entering the payments which you have made for your tax and payroll obligations.
- Click the “Finish” button when finished.
This is how QuickBooks Desktop allows you to enter the previous payroll data. Always be ensure that the YTD adjustment can only be increased; you cannot decrease the YTD by adding a negative amount. You can adjust your next paycheck if you still want to lower the YTD total.
How to Enter the Historical Payroll Data in QuickBooks Online
In order to enter historical payroll in QuickBooks, very first step is that you must gather all the information, including the employee, and input the totals from the employee pay stubs or payroll reports to record historical payroll in QuickBooks Online.
Once you are done with the input is complete then you can move on to the next employee.
Following are the specific methods in order to enter past payroll information into QuickBooks Online:
First Step, is to Collect the Data
Following are the list of information which you need to be collecting the data.
- Date of the last payment of the employee.
- Regular wages which you are giving to your employees.
- Amount paid for the Overtime to the employee.
- The amount deducted by the company from the employee account.
- The amount deducted by you from the company account.
- All the Social Security Taxes which you have paid.
- All the Federal Income Taxes which you have paid.
- All the Medicare for the employ is included
- The detail of state disability insurance
- The state Income Taxes is also included in this.
- Net Pay of employee.
Second Step is to Add the Employee
Following are the steps in order to adding the employee:
- First you have to navigate to the “Payroll” button.
- Now, select the “Overview” section option from the menu.
- In “To-Do” list tick the box which is asking you for the assignment which is to be finish.
- For adding the employee, hit the “Let’s Go” button.
- Now navigate to the “Payroll” menu on the left side of your screen, before you hit add the employee button.
- Now select “Employees” tab from the menu.
- From the List of Employees, you can select the employee as per your requirement.
Adding of the Total From the Employee Paystub or the Payroll Reports
- One should be known that past payroll data must not be entered until the setup process is completed.
- The page of the Employee opens up along with the information which you need to enter for payroll at this point.
- Now you are ready to enter or to include historical data.
Last and Final Step is to Finish the Process and Repeat above Steps with other Employees Also
- After completing all of the aforementioned actions, just click on the “Done” button which is available in the bottom left corner once all the information required for QuickBooks Online historical payroll has been entered.
- This will cause QuickBooks to update and display the revenue, net pay thus far, and taxes withheld.
- Need to be ensuring to click “Done” button in order to complete the employee detail.
- Now you can click on the “Overview” tab in order to add the following employee.
- In last press “Let’s Go” to set up the entire following worker.
We hope that the above data will help you in entering historical payroll in QuickBooks online and desktop. If in any case, you are not able to enter it or face any problem then you can connect with us. Our Dancing Numbers experts will help you in resolving the issue and helps in entering the historical payroll data. They will help you in resolving the issue in easiest way as they can.
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Frequently Asked Questions (Faqs)
How can I Enter Previous Year Payroll in QuickBooks?
In order to enter the previous year payroll in QuickBooks You has to follow the following steps:
• Navigate to the payroll tab.
• Click on the finish adding your team option.
• Click on the employee tab.
• Scroll down with the help of mouse and enter the current year pay details.
How can I Backdate Payroll in QuickBooks Online?
Follow the following steps for the backdate payroll in QuickBooks Online:
• The Payroll Center can then be accessed by hitting the Employees available at the top of screen.
• Now Depending on what you see, choose Unscheduled Payroll or Pay Employees from the Create Paychecks option.
• In the end of the pay period, the check date, and the bank account where the funds will be taken out.
• Select the printing option which fits best in order to fulfill your needs.
• Now verify the name of the employees who received payment during the period which is specified by you.
• Double-check the employees’ amounts in the proper columns.
• In order to modify the payroll information for an individual employee, click the Open Paycheck Detail option.
• Now you have to move on to the next employee.
• Click Save & Next, or to return to the home screen,
• After completing the foregoing steps, click on save & close button in order to save the changes which you have made and exit from the screen.
How can I Enter Prior Payroll in QuickBooks?
In order to enter the prior payroll in QuickBooks you have to follow the following steps:
• First you have to start entering employee names and then click on the Start button.
• Now add the employee’s information, and then click on the Continue button.
• In order to finish setting up Federal and State taxes, click Start on the Taxes column.
• Now begin adding Prior Payroll and select Start.
• Each employee’s prior payroll information that was paid in 2020 must be entered.