Dealing with payroll can be quite difficult and takes a lot of time. While handling the payroll of a business, every small detail needs to be taken care of and addressed. This is due to the fact that most of the employees depend on the proper functioning of the payroll to get their right salary on time.
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Due to these reasons, setting up payroll taxes in QuickBooks is very crucial.
Let’s dig deep to learn the benefits of setting up payroll taxes in QuickBooks Desktop.
What are the Advantages of Setting up Payroll Taxes in QuickBooks?
For several business owners, payroll is a very hectic task that requires complete focus. One has to be aware of the latest taxation laws and employment rules to implement the latest taxation rules. In short, doing taxation can be very overwhelming for most.
It is for this reason, that payroll software like QuickBooks can help business owners pay their employees at the right time with the right wage.
Here is the list of the primary benefits that one experiences with payroll software like QuickBooks Desktop:
- Employee details like pay rates along with employment status are all arranged in one place
- Payday notifications to prevent users from missing or skipping payment deadlines
- Full-service payroll tax calculation together with automatic tax analysis, payments, and filing
- Tracking, seamless management, and description of employee benefits
How to Set up Payroll Taxes in QuickBooks Desktop?
Here is how you set up payroll taxes in QuickBooks Desktop:
Step 1: Locate the Tax option.
You need to search for the tax button available on the main menu bar.
Step 2: Select the Appropriate Tax Center of the Payroll.
In case you have QuickBooks Online in your system, you need to change QuickBooks Payroll Online. See if the payroll tax option is chosen or not. Analyze all the information and make sure that the QuickBooks team provides you with complete support.
Step 3: Taxes are Set up Together with the Payroll Agreement
On the screen, in front of you, a list containing all the employees that are set up already will be displayed. You need to set up a particular birth date. You also need to set up the hiring date of the employees on payroll.
In order to get all the details via the W-4 form completed by the employee, you need to set up the taxes together with the payroll compliance.
Step 4: Enter all Company Details
Enter all the details of the company. Below are the details mentioned:
- Business Addresses: Fill up the new address of a business or it will be filled automatically.
- First Employee Hiring Date: If the employee was employed within 6 months, press Yes or else No.
- Business Name: Type the legal name of your business.
- First Payroll Date: Enter the date when the payroll will be run for the very first time.
Step 5: Enter the Details Concerning Federal Tax
Here is the information you need to put related to Federal tax:
- Forms for Payroll Tax: File the particular payroll tax form that has been allocated to you.
- Non-Profit Status: In case there is a non-profit business, press Yes. If it is not a non-profit business press No.
- FEIN: In case a Federal Tax ID is available with you, do not select no. Instead, opt for the Tax ID number.
- Forms for Payroll Tax: File a particular payroll tax form that is allocated to you.
Step 6: Share the Information
- SUI: This is the piece of data allocated to every employer.
- Account Number of the Employer: The account number is a separate number.
- ETT: Employee Training Tax that the same for all other employees.
- Deposit Schedule: As an employer, you are required to file a schedule, and on that schedule the payroll taxes in QuickBooks will be set up.
Step 7: Set up the E-file along with the E-pay Tasks
- You will be receiving two options for the payment. Either choose the pay option or the e File option or select the manual payment.
- To save time and process, E-file and E-pay should be automatic.
- The manual option is required only when there is payment is to be made via paper coupons which is a long and time-consuming process.
Step 8: Conduct Tax Payments
Once the complete process is over, check for the setting icon and choose the payroll setting option.
We have explained everything concerning how to setup payroll taxes in QuickBooks. All the points have been explained. You need to do as mentioned in the steps.
However, if you are stuck anywhere and think expert opinion can be of great help to you should reach out to us without delay. We have a team of professionals who excel in their tasks.
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Frequently Asked Questions (Faqs)
How to Set up QuickBooks Desktop Payroll Enhanced or Basic?
Here are the steps to set up QuickBooks Desktop Payroll Enhanced or Basic:
Open the QuickBooks Desktop and then set up the payroll.
Navigate to the Employee menu section.
Now go down and select the Payroll Setup option.
It will open up the Payroll Setup Wizard.
You need to do as per the instructions shared with you.
When it is complete, then you are ready for the payroll.
How to Set up QuickBooks Desktop Payroll Assisted?
Here are the steps to set up QuickBooks Desktop Payroll Assisted:
Open your Windows Desktop.
Now click open the QuickBooks software.
Navigate to the Employee menu.
Now, from the given drop-down menu, select Payroll Setup.
Now the Payroll Setup Wizard will open up.
You will need to respond as per the guidelines displayed to you.
What guidelines include with Your Computer System and Payroll Software to Set up the Payroll Taxes in Your QuickBooks Account?
Add basic details such as the name and the address of the particular employees.
State the Wage information.
Add the regular work hours for every employee.
You must link the system with your particular QuickBooks Accounting software.
Now, it is possible to set up the payroll taxes in a specific QuickBooks account effortlessly.