If you want to know how to set up payroll in QuickBooks then stick with us. First, you need the figure out how to pay your employee, and after that, you have to hire your first employee and check the basic payroll requirements in the company file. We are using the three-way to propose the payroll processing- First do payroll yourself, use payroll services like Square Payroll or hire accountants.
You are now ready to hire new employees and this may be a big milestone for you as you have created a job for someone else.
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Steps to set up the Payroll in QuickBooks
Follow the steps mentioned below one-by-one to setup QuickBooks Payroll.
Step 1: Have all employees complete a W-4
- Employees have to complete Form W-4 to document their filing status and keep the track of their personal allowances. Each pay period the fewer payroll taxes are taken out.
Step 2: Finding and sign up the Employee Identification
- Ensure that you have your employer Identification number ready, and Employee identification number (EIN) is kind of like an SSN for your business and is used by the IRS to identify a business entity and whoever pays employees.
Step 3: Choose your Payroll schedule
- QuickBooks Payroll using the list for your Employer Identification Number gets insurance and display workplace poster. Add these three dates in your calendar: the employee pays dates, tax payment due dates, as well as tax filing deadlines.
Step 4: Calculate and withhold income taxes
- Your employer pays taxes by utilizing the IRS Withholding Calculator and your state’s resource or a reliable paycheck calculator. It is coming time to pay your employees and you must also keep a record of both the employee and employer share of taxes as you go.
Step 5: Pay taxes
- On a monthly basis, you need to submit your federal, state and local tax deposits (as applicable).
Step 6: File tax forms & employee W-2s
- Remember about preparing your annual filings and W-2s at the end of the year. This is not an exhaustive list of your duties as an employer. Be sure to go over federal and state requirements or consult with an expert.
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