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QuickBooks Payroll: 5 Major Benefits

Yes, your initial QuickBooks payroll setup can take some time and requires attention to detail.

BUT manual payroll-processing requires even more work – and you have to do it over, and over, and over. Which sounds like the better choice?   

QuickBooks PayrollAsk 10 small business people which element of their accounting tasks they’d like to shed, and chances are that eight of them would say “payroll.” Paying employees can be stressful – not only because it requires precision – but also because you have to deal  (accurately!) with multiple taxing agencies, including the IRS.

How can QuickBooks Payroll Make Payday Easier?

QuickBooks Payroll has been designed to enhance your understanding of the entire payroll process while simultaneously solving multiple payroll-related problems. Depending on which version you choose, QuickBooks Payroll can help you:

  • Assign each employee’s payroll, payroll taxes (and even labor burden!) costs to jobs and to job tasks.  Result: Job-cost reports that reflect employee labor costs.  You can use the built-in QuickBooks timesheets to initially enter information and then direct it to create the paychecks and related job-cost assignments (the easiest way). Alternatively, you can enter the employee’s jobs and tasks directly into the QuickBooks paycheck screen.

    You can then choose to print payroll checks on check stock to hand to employees, OR you can choose an option to have employee payroll deposited directly to employee bank accounts (a terrific time-saver for both you and your employee!).

    If you want accurate job cost reports and need to include employee payroll and related costs, let us know.  We can help you select the specific service that will most effectively help you do that (and as Solution Providers, we’ll provide you with an estimate and help you with your order).
  • Keep employee information organized. You’re probably well-acquainted with the mounds of paperwork that have to be filed for new employees. QuickBooks Payroll helps ensure that you obtain all of the information that’s required by your company, your financial institution, and taxing authorities. Once entered, it’s always easily accessible and ready to be used as you prepare payroll runs.

QuickBooks PayrollFigure 1: QuickBooks stores the voluminous employee-related details
you’ll need when it comes time to process payroll.

  • Track and administer company benefits and Workers’ Compensation Insurance. You know that generous benefits can both attract potential hires and contribute to overall job satisfaction. But the administration aspect can quickly become very complicated. QuickBooks’ Payroll Setup tool uses a simple wizard to walk you through the process of entering all of the details required to define them, to withhold pay where necessary, and keep up with timely payments to outside agencies.

    Employees receive detailed pay stubs that spell out contributions made toward:

– Insurance (health, dental, life, Health Savings Account, etc.)
– Retirement (401(k), IRA, etc.)
– Paid time off, and
– Miscellaneous deductions (wage garnishment, union dues, charitable donations, etc.).

QuickBooks PayrollFigure 2:  The Payroll Setup tool helps you make the right choices.

  • Prepare and submit payroll taxes. Fulfilling this ongoing obligation manually can be a big chore!  Manually preparing accurate reports and submitting the correct amounts to the correct agencies includes a variety of risks.  Consider the potential for incorrect calculations, missed deadlines, and penalties from various taxing agencies for recurring responsibilities that include FUTA and SUTA, Medicare tax, and FICA, as well as state and local taxes where applicable.

    Intuit offers three levels of payroll tax support that work with desktop QuickBooks. You can choose from a variety of services up to and including having federal and state forms automatically completed for you and your taxes electronically filed and paid.  When you choose this option, you can say “Goodbye to payroll reporting and payments risk! because your QuickBooks Payroll service takes full responsibility to see that these obligations are properly taken care of.  No more worry about timely filings and late payment penalties!
  • Process payroll quickly and accurately. The time you invest in setting up the foundation to your payroll system pays off every time you run payroll. QuickBooks reminds you when it’s time to pay employees, and provides you with a clear, simple series of screens for running payroll. If you don’t job cost, you’ll only need to enter the number of hours worked.  If you want to track job costs and tasks, you can do that as well.

QuickBooks PayrollFigure 3: Because you laid a solid foundation during the setup process,
all of the calculations are done for you by QuickBooks.

Would You Like Help Getting Started With QuickBooks Payroll?

There really are no downsides to using one of QuickBooks’ payroll options. Granted, entering and finalizing payroll information requires attention to detail; it’s imperative that you get it right, or you’ll have unhappy employees, hear from taxing agencies and plan providers, and likely encounter some penalties that you’ll need to pay. QuickBooks definitely provides the tools you need…

That said, there are still some complexities involved in setting up the underlying structure.  Because of this, many of our clients like to recruit some additional experienced assistance.  So, if you’re thinking about automating your payroll process, and would like someone to help guide you through the setup process, be sure to give us a call (866-244-2228).  We’ll be pleased to help you “get it right” from the start, and you’ll be able to enjoy payday instead of dreading it!

Learn more about our construction accounting and manufacturing program classes and discover our job-cost support products!

a ProAdvisor website…

“It has been a great experience working with Diane, I was a Peachtree user for over 15 years and she made the transition over to QuickBooks very easy. In working with Diane, I actually enjoy QuickBooks now, and if I get in a situation that I don’t understand something I can call her office or send her an email and she is ready to respond. Diane is highly recommended!” From the Intuit Find