When it comes to running the business, there are countless jobs to perform. The most important work that draws the attention of every employer is generating payroll for their employees. Technically, creating payrolls is a complex and time-consuming task. Henceforth, most employers look for payroll software for small businesses. QuickBooks payroll has carved a special niche for itself and has come out as the best payroll software for small businesses. The diversified plans and sophisticated features help businesses that want more than HR and payroll software.
Here, in this article, we have provided the step-by-step process of implementing QuickBooks payroll. Apart from that, we have covered the other aspects of small business payroll software.
What is QuickBooks Payroll Processing Software?
QuickBooks is a well-established accounting software in the market that serves the business owners of multiple industries. Apart from offering different accounting solutions, QuickBooks also offers payroll software for small businesses. The application is specially designed to streamline and automate payroll processes such as payroll tax filing, generating payroll data, and more. The wide range of tools and features of Intuit’s online payroll ensures the efficient, accurate, and timely occurrence of various payroll tasks. It ensures the automatic calculation of salaries, including deductions such as Incentives, TDS, PF, and bonuses.
Who Uses QuickBooks Payroll Service Software?
Currently, the QuickBooks market share is around 80%, with many new customers added each year. The business owners of SMEs widely use HR and payroll software. Millions of companies across the globe are using this payroll small business software. Of all the companies that use QuickBooks Payroll, the majority (52%) are small businesses (< 50 employees), 31% are medium-sized, and 16% are larger employees having more than 1000 employees. Out of these, the application is widely used by companies located in the United States.
Ultimate Features of Payroll Management Software
When choosing the best small business payroll management software, always look for the features it offers. The key features of QuickBooks payroll small business software are as follows:
Plans | Features | Cost | Employee Support |
Payroll Core | Core + QuickBooks Simple Start | $45 per month | Plus $5 per employee per month |
Payroll Premium | Core + QuickBooks Essentials | $75 per month | plus $8 per employee per month |
Payroll Elite | Premium + QuickBooks Plus | $125 per month | plus $10 per employee per month |
Time Tracking
Intuit has built an incredible application to track the working hours of the employees – QuickBooks Time. No matter how big or small your company is, it successfully tracks the time for all. The tools help you to get real-time insight into how each employee spends their time. This feature is available in QuickBooks payroll premium and elite.
Auto Payroll
By turning on this feature, you can simply save your precious time. It allows you to calculate the payroll automatically whenever needed.
Same Day Direct Deposit
Pay your team on time and fast. It allows you to pay your employees directly on the same day, and the payroll is calculated. All you need is to enter the relevant information of your employee, such as working hours, deductions, and leaves, and let the best small business payroll calculate the employee payroll. The flexibility to run the payroll anywhere gives you the power to pay on time.
Tax Penalty Protection
QuickBooks Payroll calculates the state and federal taxes and notifies you. In case you receive a federal or local tax penalty for an error made while using QuickBooks Payroll, the experts of QuickBooks will help you resolve the error. Also, you will get the reimbursement of penalty and interest costs. The experts deal directly with the IRS so that you have peace of mind.
HR Advisor
Get the assistance from an expert. You can avail the facility to talk to an HR professional.
Ease of Use
The intuitive and easy-to-use interface allows the users to access the payroll tools, features, or data easily. You can easily pay your employees or add a new employee. All you need is to click on the relevant options.
Analytics and Reporting
The Intuit payroll comes with 20 reports, such as payroll deductions, billing summary, total pay, tax liability, and more. You can customize the reports easily. Also, mark the report as your favorite and simply access it in a single click. Moreover, you can export the reports from payroll.
Tax Filing
The state and federal taxes are automatically calculated for you. Also, you can create and e-file the 1099 MISC and NEC forms.
Accessibility
The best payroll software for small businesses – QuickBooks is available as an application for both Android and iOS users. You can access the platform from anywhere and at any time by downloading its free mobile app.
How to Setup QuickBooks Payroll Small Business Software?
Well, the processing of payroll does not simply mean transferring the salaries from the employer account to the employee account. It involves more than that, such as employee information, deductions, tax payable, and more. Any inefficiency or discrepancies to these will lead to the accounting blunder and dissatisfaction.
To calculate the accurate payroll of the employees, you need to set the small business payroll software correctly. Getting started with QuickBooks is super easy. The below-mentioned steps will guide you on how to set up the payroll small business software.
Create QuickBooks Account
The foremost thing is to create a QuickBooks bank account. You need to visit the official website of QuickBooks and set up your account for free. Once the account is set up, they can access the QuickBooks payroll software through the dashboard.
Select the Appropriate Plan
QuickBooks offers various plans with varying features. You can pick any of the plans based on your business requirements. There are a lot of things that need to be considered, such as payroll frequency, number of employees, or other relevant information.
Feed the Employees Information
Once you have successfully selected the pal, you need to feed the correct information to your employees. It might include various details such as employee name, marital status, tax withholding status, deductions, contact information, and more. The correct and accurate information helps you in calculating the right payable amount after deducting the taxes.
Set Up the Payroll Settings and Taxes
The application allows you to configure the payroll settings according to your business needs and requirements. The owners can set up the pay rates and frequency of payment, i.e., hourly wages or monthly payments. Also, handling the taxes can be quite complex. The application simplifies the process. To calculate the accurate tax deductions from the employee’s salary, the business owners must provide accurate information such as federal and state tax.
Add the Company’s Bank Account
Once you have set up the payroll settings as per your business requirement, you need to set up a direct deposit account for your business. The businesses must link their bank account to QuickBooks payroll to facilitate timely payment and direct payments. It ensures the safe and secure transfer of employees’ salaries to the employee’s account.
Implement the Tracking System
Next, you have to implement the payroll system. It is a good practice to run a test payroll before running the actual payroll. It minimizes the risk of errors when calculating the actual payroll.
Review and Approve the Time Sheet.
Once the time sheet is generated, it is advisable to review it. The regular reviewing of payroll time sheets ensures accuracy. You must check the employees working hours, salaries, and other relevant information needed to calculate the exact paychecks. After reviewing the timesheet, you need to approve it so that the salaries can be generated timely.
How to Initiate Payroll Small Business Software Process?
Once you have finished setting up the payroll software for small business, entering the payroll on QuickBooks is quite simple. Follow the steps mentioned below to initiate the payroll process before every cycle starts.
Step 1: Move to the Payroll Sections in QuickBooks
The Steps to Follow Are:
- Log into your QuickBooks account by using your admin credentials.
- After that, tap on the employee’s section and then pick the payroll center option.
- Further, click on the pay employees option.
- In case you are using it for the first time, click on the “OK, I am Ready” option.
Step 2: Select the Payroll Type
You can select the scheduled or unscheduled payroll before setting up the payrolls on QuickBooks. You will be taken to another screen in case you opt for the scheduled payments. The pointers mentioned below will help you in setting up the employees tab.
- Add a New Employee: To add the new employees, click on the employees tab.
- Input Personal details: enter the correct and accurate information of employees, including full name, birth date, social security number, marital status, contact information, and more.
- Enter Tax Information: Set up the state and federal tax withholdings by using the W-4 form.
Step 3: Insert The Payroll Information
After that, you need to insert the payroll information, such as pay type, pay rate, additional compensation, and deductions. The steps to follow are:
- Enter the information like paycheck start date and end date.
- Also, choose the bank account from which you wish to pay your employees.
- Select the payment frequency, such as a weekly or monthly payment, that aligns with your business operations.
- Also, do enter the federal and state tax details, if applicable.
- Also, do not forget to include the working hours, overtime, or the leaves taken.
- Let the best payroll software for small businesses – QuickBooks, calculate payroll for you based on the information provided.
Step 4: Review and Make Paychecks
Lastly, review the information to ensure that it is correct and accurate. The points to consider are as follows.
- Verify Information: Review the calculated payroll carefully. Make sure all the entries made are accurate.
- Make Adjustments if Needed: In case any discrepancies are there, make the necessary adjustments wherever needed.
- Finalize Payroll: Once making the necessary adjustments and reviewing the payroll again, approve the payroll for further processing.
Step 5: Print Checks or Process Direct Processing
Once you have finalized the payrolls, you can print checks or process the direct deposits. You can pay your employees either through printed checks or via direct payments.
How Much Does Intuit Online Payroll Cost?
QuickBooks Payroll offers three tiers plan to its users: Payroll Core, Payroll Premium, and Payroll Elite. The breakdown of the small business payroll software monthly plans is as follows:
What are the Benefits of Using QuickBooks Payroll Software for Small Businesses?
Apart from calculating the payroll automatically, the application eliminates human error, stays updated with tax rules and regulations, and attains accuracy. The application makes your payroll calculation easy and simple. Some benefits of using the best payroll software are:
Attain Accuracy:
The payrolls of employees are calculated accurately without any error. The exact pay slips are calculated on time.
Follow Compliance:
No need to worry about staying updated with new tax rules and regulations. The application will automatically update itself to make sure that you work as per the latest tax rules.
Efficient Payroll Processing:
The application calculates the payroll efficiently. The chances of occurring errors are also reduced.
Reduce the Year-End Burden:
The automatic tracking, report generation, and payroll calculation make the year-end process less stressful.
Organize Employee Information:
Employees’ information is organized properly. There is no need to spend hours finding the information of a particular employee. You can easily find the information of an employee.
Wrapping it Up
Paying your employees on time and accurately is an important aspect of your business. Hence, choosing the right payroll software is very much crucial. No doubt, there is various payroll software; however, the easy-to-use advanced payroll software, live person support, and robust knowledge database make QuickBooks the best payroll software for small business. The application successfully caters to the unique needs of small businesses. We hope that this blog rectify all your queries regarding the payroll software. However, if you still have any queries, then you can get in touch with our experts.
Frequently Ask Questions (FAQs)
Yes, QuickBooks payroll can be seamlessly integrated with other QuickBooks products. Moreover, the payroll also integrates well with other business applications such as MailChimp, Bill, and Fundbox.
Indeed, QuickBooks payroll is the best payroll service software used by SMEs for tax filing and payroll generation. However, some cons are also associated with it. Below, we have mentioned some drawbacks of QuickBooks payroll:
• Some features are only available at higher plans. You need to pay more to use those features.
- Updating the application might become difficult.
- Time tracking is only available for the higher plans.
No, using the payroll in QuickBooks is extremely simple. The easy-to-use dashboard of the application makes it extremely easy to use the application from anywhere and anytime.
The processing of payroll might take time. It depends on the number of employees and the method you are using. QuickBooks payroll simplifies the hectic task of calculating the accurate payroll of your employees. All you need is to set up the payroll and enter the correct information.
Yes, our experts are well-trained in resolving various QuickBooks queries. Apart from resolving the technical glitches, they will assist you in downloading, installing, or setting up QuickBooks. Just dial our helpline number and speak to our specialist today.