QuickBooks Full Service Payroll - Royalwise Course Slides
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The document provides a comprehensive guide on QuickBooks Online Full Service Payroll, including its benefits, service levels, and setup procedures. It covers topics such as understanding employee versus contractor classification, payroll processes, managing taxes, setting up employee information, and running payroll. The document also includes recommended practices for payroll management and highlights features available within the different service tiers of QuickBooks Payroll.
QuickBooks Full Service Payroll - Royalwise Course Slides
- 1. QuickBooks Online Full Service Payroll With Alicia Katz Pollock Royalwise.com
- 3. Download Handouts •Find class at learn.royalwise.com • On Enrolled tab (or Completed tab) •Download Slides
- 4. About today’s speaker Member of: • Top 100 ProAdvisor • IntuitTrainer/Writer Network national speaker Trainer: • The Mentorship Membership™ program at learn.Royalwise.com • Weekly live classes and on-demand video courses Author of Books on Amazon: • Master QuickBooks Online: From Setup toTaxTime • Specialty Retail: QuickBooks for Gas Stations and Convenience Stores • QuickBooks Desktop Complete Alicia Katz Pollock CEO of Royalwise.com
- 5. Agenda • About Payroll • Benefits of QuickBooks Online Payroll • Levels of Service • Understanding Payroll • DocumentsYou’ll Need • Viewing Employee Info • Setting Up PayrollTax E-file • Setting Up Benefits • Adding Employees • ManagingTime • Running Payroll • PayingTaxes • Getting Help
- 6. Q&A
- 7. Getting to Know QuickBooks Online Payroll
- 8. Benefits of QBO Payroll
- 9. Why QBO Payroll? QBO • One-stop shop • Integrated into QBO ecosystem • Taxes paid for you • Auto Payroll • Can pay 1099 contractors • Workforce portal for employees Other Providers • Uses another website • May not import into QBO • Deadlines to miss
- 10. Choosing the Right Version
- 12. Core Subscription • Unlimited payroll runs • 24-hour direct deposit • Tax payment calculations • Automated tax payments and form filing for federal and state (not local) taxes • Availability of self-service processing • New hire reporting • Self-service employee portal (Workforce) • Free year-end forms • Available in all 50 states • Manage garnishments and deductions • Payroll reports • Auto Payroll • Health benefits
- 13. Premium Subscription QuickBooks Online Payroll Premium includes all Core benefits plus additional features: • User permissions • Onboarding setup review • Same-day direct deposit • HR support center • Automated tax payments and form filing for local taxes • QuickBooksTime (wasT-Sheets)
- 14. Elite Subscription QuickBooks Online Payroll Elite includes all the benefits of Core and Premium, plus these additional offerings: • Expert onboarding setup can be completed by a payroll specialist, including conversion from other payroll companies • Guaranteed: Because all fees are calculated and managed on your behalf, they pay any penalties incurred • QuickBooksTime tracking includes real-time tracking of project hours and labor expenses. Geofencing alerts workers to clock in or out when entering or leaving the job site, and an activity feed lets team members add and view notes, photos, and project updates from anywhere • Personal HR advisor • Multi-state filing with no additional fee
- 15. Q&A
- 17. Employees vs Contractors Independent Contractors •They run their own business, providing a service you need •They bill you at an agreed rate •They pay their own taxes Employees •They perform tasks you assign •You set the parameters for when and how the work is done •You dictate the pay •You pay their taxes
- 18. How Payroll Works •You pay your employees hourly, or an annual salary •Payroll taxes are withheld from your employees' paychecks: • Social security and Medicare • Federal and state unemployment • Personal income tax (federal and state) • Miscellaneous other state taxes •You pay taxes as an employer
- 19. Payroll Liabilities •You collect money from employees to remit to state, federal, and other agencies • Taxes • Health Insurance Premiums • Wage Garnishments •The money accrues through the month and/or quarter, then zeros out when you pay the vendor •Reconcile these accounts to $0!
- 20. Payroll Expenses •The money your company pays as a cost of doing business • Wages • Payroll taxes • Payroll fees
- 21. If You Aren’t Using QBO Payroll •If you use third party payroll: • Some integrate completely, even mapping liabilities • Some just draw PayrollWages,Taxes, and Fees from your bank •Your options: • Just track the three expenses above, since you can always log in to the payroll company’s website for the details • Import a Journal Entry mapping the total payroll liability and expense • Enter a manual Journal Entry – good for details like Classes
- 22. User Permissions •For each QBO user, Payroll Access is optional •If they don’t have access, the Payroll and Payroll Tax screens will be blank •Paychecks will have no name on them
- 23. Best Practices •Some business owners don’t have good money management skills, and get caught short when it’s time to pay taxes •Keep a separate checking account just for payroll and taxes •Move theTotal Payroll Cost into the account • Net Pay comes out of account for paychecks • Tax money is already set aside
- 24. QuickBooks Cash + Envelopes •Free checking account from Intuit •1% APY interest •Create an Envelope for Payroll andTaxes •TransferTotal Payroll Cost into the envelope •Payroll and taxes are drawn from there by default •Set your QB Payments merchant services to deposit there as a payroll funding source
- 25. Q&A
- 27. Getting Around
- 28. The Overview Tab
- 32. Benefits
- 33. Compliance
- 34. Q&A
- 38. View a Paycheck
- 39. Q&A
- 41. What documents will you need?
- 42. Documents You’ll Need •Company bank account info for direct deposit and electronic tax payments •Company’s Compensation and Benefits policies •Employee info •Tax info •Year-to-date Employee Payroll history •Year-to-dateTax Payment history
- 43. Compensation and Benefits •Types of employee benefits: hourly wages, salaries, bonuses, commissions, and tips •Types of employee compensation: health and dental insurance, 401(k), retirement plans, vacation/sick leave, or Flexible Spending Account (FSA) •Other additions and deductions: cash advances, mileage and travel reimbursements, union dues, and wage garnishments
- 44. Employee Info • Completed Form W-4 for each employee • Pay rate: hourly, salary, commission, etc. • Paycheck deductions: employee contributions to health insurance, retirement plans, or garnishments (child/spousal support) • Pay schedule: weekly, bi-weekly, semi-monthly and monthly • Sick/vacation hours policy and balance • Hire and termination date
- 45. Tax Info • Federal Employer Identification Number (FEIN) and state agency ID numbers • Filing requirement and deposit schedule for payroll taxes: Requirements for when to file and deposit payroll taxes vary. Companies that owe more payroll tax usually pay and file more frequently. • Electronic FederalTax Payment System (EFTPS) enrollment: It's mandatory to submit federal tax deposit payments electronically. • Other tax information: Such as state unemployment, assessment, surcharge, administrative or training tax rates, tax deposit schedules, and local or other taxes, if applicable.
- 46. Prior Payroll History • If you've already paid employees this calendar year, you’ll fill in theYTD history to accurately calculate new paychecks and complete your tax forms. • For the current quarter: payroll details from each paycheck. • For each prior quarter of this calendar year: summary by employee and summary for all employees (total company payroll) • Year to date totals for each employee: summary by employee • Year to date totals for each employee as of the last paycheck in the previous quarter: summary by employee
- 47. Liability Info •For the current quarter: copies of all payroll liability checks •For each prior quarter of this year: summary of payroll liability payments
- 48. Multistate Info •Do your employees live and work in different states? •Find out your state’s filing requirements •Extra charge in QBO Payroll
- 49. Q&A
- 50. Payroll Settings
- 51. Go to Payroll Settings Gear > Payroll Settings
- 53. Confirm Company General Tax Info
- 54. Enter Federal Tax Info
- 56. Enter State Tax Info
- 57. Automate Taxes and Forms • Turn on AutomateTaxes and Forms • …unless you want to do it manually… • …but this risks late payments! • Pay Sooner or Later • Sooner pays immediately when due • Later pays at the last minute
- 58. Set up Email Notifications
- 59. TurboTax!
- 60. Set Up Your Bank •What account is Payroll &Taxes drawn from?
- 61. Will You Print Checks? •If you don’t have to, DON’T! Direct Deposit is the way to go.
- 62. Q&A
- 63. Mapping Payroll to Your Chart of Accounts
- 64. Accounting Preferences •Map payroll categories to your Chart of Accounts •Settings can be defaults for all, or customized by employee
- 65. Mapping Wages •Each employee’s wages can be mapped to different accounts • Wages • Officer Salary • Cost of Labor (COGS)
- 66. Mapping Tax Liabilities •Each federal, state, and local tax gets mapped to its own liability •When you pay, be sure to pay to these liability accounts, NOT an expense category •EmployerTaxes ARE an expense
- 67. Class Tracking • Do you use Class tracking in your QBO? • Assign Classes to Employees so that wages show in reports • The same class for all • Different classes for each • There is no way to assign multiple classes to an employee
- 68. Q&A
- 69. Setting Up Company Policies and Benefits
- 70. Pay Schedules
- 71. Adding a Pay Schedule • Pay frequency • Every week • Every other week • Twice a month • Every month • End of next pay period • Verify Upcoming Pay Periods • Name schedule • Set as default for future employees
- 72. Q&A
- 73. Pay Types
- 74. Salary •Annual amount split into equal payments •Doesn’t matter how many hours they put in as long as the job gets done •Default hours used for time off
- 75. Hourly Pay Types •Create a set of pay rates to choose from •Can add more on the fly
- 76. Q&A
- 78. Paid Time Off •Set accrual method • At beginning of year • Each pay period • Per hour worked • On anniversary date • Unlimited •Enter hours per year •Set optional maximum allowed
- 79. Unpaid Time Off •Set accrual method • At beginning of year • Each pay period • Per hour worked • On anniversary date • Unlimited •Enter hours per year •Set optional maximum allowed
- 80. Sick Pay •Set accrual method • At beginning of year • Each pay period • Per hour worked • On anniversary date • Unlimited •Enter hours per year •Set optional maximum allowed
- 81. Vacation Pay •Set accrual method • At beginning of year • Each pay period • Per hour worked • On anniversary date • Unlimited •Enter hours per year •Set optional maximum allowed
- 82. Use It or Lose It? • In most cases, accrual caps provide a maximum for each benefit • Some companies have an annual use-it-or-lose it policy • Employees’ time-off balances automatically carry over into a new calendar year. • If unused sick time is lost at the end of the year, you need to manually change the employee’s balance at the beginning of each year.
- 83. Q&A
- 86. Health Insurance
- 87. Retirement Plans
- 88. Garnishments •Alimony •Child support •Defaults on a student loan •Unpaid taxes •Other debts
- 89. Paying Garnishments •Held in Liability account •When you pay the agency each month, be sure to categorize to the liability account, not an expense! •This money came out of their wages, so it’s a passthrough for the company
- 91. Worker’s Compensation Built-in from AP Integro •Pay-as-you-go based on your payroll •Tracks as a liability Third Party •Recorded as an expense •Calculation is manually updated each year • Worker’s Comp protects an employee’s wages if they get injured or sick from doing their job. • It covers medical expenses, lost wages, and more. • The rate varies according to job function – some jobs are more risky than others!
- 92. Q&A
- 94. Add Employee •Walk through the steps •Apply company policies or create new ones on the fly
- 95. Adding an Employee •Best practice: Ask this employee to enter theirW-4 and banking info with QuickBooksWorkforce
- 97. Manually entering W- 4 info •W-4 changed in 2020 •Be sure to check off local taxes
- 98. Invite to Workforce •Self-serve portal for employees •View paychecks,W2 info, deductions •No more printing paystubs!
- 99. How Often Will You Pay? •Default automatically selected •Change if needed
- 100. How Much Do You Pay? •Hourly, Salary, or Commission •Set Default hours per day and days per week • Can change as needed • Great for Auto Payroll
- 101. Common Pay Types These show up as fields on each paycheck: •Overtime •Double Overtime •Holiday Pay •Bonus •Commission
- 102. Add Paid Time Off Policies •Choose your paid time off policies from available options
- 103. Additional Pay Types •Choose additional payment options to use as needed •Pay special attention to Reimbursements,Tips, S-Corp Owners Health Insurance
- 104. Customize Pay Types •You can make multiple variations of similar pay types •For example, you can make multiple Reimbursements, including recurring amounts
- 105. Coronavirus Options
- 106. How Do You Want to Pay? •Pay options: • Direct Deposit • DD to two accounts • DD some, check for the rest • Paper Check •Direct deposit is fast and easy • No lost checks!
- 107. Set up Direct Deposit Instructions Employee: Fill out and return to your employer. Employer: Save for your files only. This document must be signed by employees requesting automatic deposit of paychecks and retained on file by the employer. Do not send this form to Intuit. Employees must attach a voided check for each of their accounts to help verify their account numbers and bank routing numbers. Account 1 Account 1 type: Checking Savings Bank routing number (ABA number): Account number: Percentage or dollar amount to be deposited to this account: Account 2 (remainder to be deposited to this account) Account 2 type: Checking Savings Bank routing number (ABA number): Account number: attach a voided check for each account here Authorization (enter your company name in the blank space below) This authorizes (the “Company”) to send credit entries (and appropriate debit and adjustment entries), electronically or by any other commercially accepted method, to my (our) account(s) indicated below and to other accounts I (we) identify in the future (the “Account”). This authorizes the financial institution holding the Account to post all such entries. I agree that the ACH transactions authorized herein shall comply with all applicable U.S. Law. This authorization will be in effect until the Company receives a written termination notice from myself and has a reasonable opportunity to act on it. Authorized signature: Employee ID #: Print name: Date: Employee Direct Deposit Authorization Form Ver. Authorization_for_Direct_Deposit-061812 Employee Direct Deposit Authorization Intuit QuickBooks Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 108. Q&A
- 110. Mid-year Setup •If you have already run payroll in this calendar year, QBO will ask you to enter: • Year-to-date wages, tax withholding, and deductions for each employee, including terminated employees • Total company payrolls for each pay date in the current quarter • This acts as a cross-reference for the individual entries to make sure your data entry was correct • Tax payments made in the current year
- 111. Q&A
- 112. Setting up Payroll Taxes
- 114. Enter Federal Tax Info
- 115. Enter State Tax Info
- 116. Connect Your Bank
- 117. Enter Missing Info
- 119. Choose Bank Account
- 120. Sign Up to E-File Taxes 1. Verify your identity – it will ask questions about places you’ve lived, companies you’ve worked for.You will need the owner with you! 2. E-sign your authorization forms
- 121. State Forms •You may have to fax documentation to your state for authorization •You may need a state BIN or ID number
- 122. Q&A
- 123. Keeping Track of Employee Time
- 124. Time Sheets •Free in QBO •Make free logins for employees just forTime Cards •Enter SingleTime activity •UseWeeklyTimesheets •Entries can be assigned to Customers, Services, and Classes •Time can be marked Billable to customers
- 125. Single Time Activity
- 126. Weekly Timesheet
- 127. QuickBooks Time (TSheets) •Comes with Premium and Elite •Employees can track time on their phones or by logging in •Robust features
- 128. Q&A
- 130. Running Payroll
- 131. Approve Time •If usingTimesheets, review for accuracy •If using QuickBooksTime, approve time cards
- 132. Click Run Payroll
- 133. Confirm All Columns
- 134. Overtime • Displays calculations and overtime rules to ensure compliance with the Fair Labor Standards Act (FLSA) regulations. • Uses a 40-hour workweek • Makes suggestions and will split time
- 135. Review and Submit
- 136. View Paycheck Details A video!
- 137. Payroll Details Report • Click the Preview Payroll Details button at the bottom of the payroll run’s Review and Submit screen • Summary by employee • Pay • Deductions • Employee-paid taxes • Employer-paid taxes • GrandTotal
- 138. Auto Payroll •If the payrun is the same every week, you can turn on Auto Payroll •It runs automatically on the schedule you choose •It repeats the most recent run •You will receive a preview summary, and have 2 business days to make changes
- 139. Q&A
- 140. Bonus Runs
- 141. Bonus Runs •End-of-year bonuses •Any time you need an extra payment
- 142. As Net Pay or Gross Pay? •As Net Pay • How much do you want them to receive? • Grosses up to include taxes •As Gross Pay • How much to you want to give? • Deducts taxes
- 143. Bonus Pay and Memo
- 144. Q&A
- 145. Tips and Gratuities
- 146. Paycheck Tips •Cash or credit card tips paid through paycheck •Setting is in Additional PayTypes
- 147. Cash Tips Out of the Register •Not included in the wages •Still have to be reported asW-2 income •Taxes are deducted
- 148. On the Paycheck
- 149. Q&A
- 151. Deleting vs. Voiding Deleting Paychecks •The check been not cashed •The direct deposit has not cleared •Removes it completely Voiding Paychecks •The check has been cashed •The direct deposit has cleared
- 152. Tax Implications • Paychecks in prior periods require tax adjustments and amendments • Paychecks in prior years cannot be changed • Tax adjustments will be applied to future payrolls in the same quarter • If the paycheck is in the last payroll of a quarter, tax funds may be refunded by the taxing agencies, or are held for the next quarter payroll • Direct deposits cannot be stopped once they have offloaded.You can request a direct deposit reversal if it falls within the Intuit Guidelines. • If you void and recreate a paycheck which an employee has already cashed, it must be recreated with the original check date; note that this could cause backdating fees.
- 153. Deleting and Voiding
- 154. Q&A
- 156. Pay Contractors with Direct Deposit
- 158. Adding a New Contractor •Click ”Add a Contractor” •Enter their name and email address. Send the email! •Intuit creates a free QuickBooks Self-Employed account for the Contractor •They fill in theW-9 electronically •Your both get a copy in your portal
- 159. The Contractor’s Experience •They can use QB Self- Employed for free •They can keep theirW-9 on file and submit to Clients with a few clicks •They can keep all 1099s in one place •They can subscribe for full use of the software
- 160. Paying Contractors •Pay by Direct Deposit •Write Check •Create a Credit Card Expense •Create a Bill for later payment •Run 1099s right from inside QBO
- 161. Take my full class about 1099 Contractors! http://royl.ws/QBO-1099 •30 minutes •$19, or free with subscription
- 162. Q&A
- 164. Payroll Reports •Set your desired date range •Export to Excel or printer-friendly version •Drill in to the tax types to see paycheck details
- 165. Tax and Wage Summary Report
- 166. Payroll Summary by Employee
- 167. Total Cost Report
- 168. Time Off Report
- 170. Tax Liability Report
- 171. Recent Time Activities Report
- 172. The Project Center
- 173. Q&A
- 174. Payroll Taxes
- 175. Paying Taxes
- 176. Automatic vs Manual •QBO will pay taxes and file forms for you automatically • We saw the setting in Payroll Settings earlier •You can manually initiate e-filing your forms and submitting payment •You can also file manually, by logging into state and federal websites to submit forms and payments •Some states do not have e-filing
- 177. Payroll Tax Center
- 178. E-Filing Taxes
- 179. Made a Mistake? •Tax payments can be cancelled until the payment date •Call Support to have them make the changes in the system •You may have to file an amendment on the federal or state website
- 180. Q&A
- 181. Sending W-2s
- 182. Submit W-2 Forms To Employees • Provide forms by Jan 31 • QBO sends Copies B & C to employees by snail mail • Employees can log into Workforce for electronic copies • Forms are archived for future reference To the IRS • Submit by Jan 31 • QBO will e-file Copies A & D • Forms are archived for future reference
- 183. Q&A
- 184. Getting Support
- 185. Search for Help •Click on the Help in the upper right corner •Context-sensitive articles •Search for your question •Click through to read articles
- 186. Who Ya Gonna Call? •Click Contact Us (after searching articles) • Chat help • Set an appointment • Have them call you!!!! •Click the pretty lady in the lower right corner
- 187. Q&A
- 188. Conclusion
- 189. Quizzes Participation Quiz for CPE Quizzes about content to reinforce knowledge and complete the class
- 190. Watch Again Later! •Today’s class was recorded •Available at learn.Royalwise.com •Look in your Enrolled or CompletedTab •Broken up into bite-size pieces for easy reference!
- 191. Ask Questions Forum After class, if you have more questions, post in the Forum
- 192. Leave a Review! Lower right corner of course Helps us with word-of-mouth We’ll give you extraWisdom Quest points!
- 193. What’s next? •Upcoming classes •Join Mentorship program
- 194. Thanks for coming! See you in the next class!