Getting Ready to Do Payroll with QuickBooks 2008 - dummies

Getting Ready to Do Payroll with QuickBooks 2008

By Stephen L. Nelson

Part of QuickBooks 2008 For Dummies Cheat Sheet

If you want to use one of the QuickBooks Payroll service options because you want to save money, you aren’t scared of a little paperwork, or maybe you want the extra flexibility that comes with doing it yourself, you need to sign up for the appropriate flavor of service.

To set up for a payroll service option, get ready to hop on the Internet. Follow these steps:

  1. In QuickBooks, choose Employees→Payroll→Order Payroll Service.

    QuickBooks connects to the Internet and displays the first page of a multiple-page web form that enables you to sign and set up the QuickBooks Payroll service.

  2. Follow the on-screen instructions.

    Note: Setting up the QuickBooks Payroll service requires that you have accurate year-to-date payroll information for all your employees as well as state withholding rate information. You’ll want to collect all this information before you begin. The process of setting up payroll — assuming that you have the information at hand and that you have only a handful of employees — shouldn’t take much more than half an hour.

  3. Schedule your payroll.

    After you sign up for (and indirectly set up) the QuickBooks Payroll service, you need to schedule your upcoming payroll activities. To do this, choose the Employees →Add or Edit Payroll Schedules command.

    When QuickBooks displays the Payroll Schedule List window, click the Payroll Schedule button and then New. When prompted by QuickBooks, describe the payroll you’re scheduling. For example, if you’re setting up a weekly payroll, name the payroll something like Friday payroll. Furthermore, describe the frequency as weekly, biweekly, semi-monthly, and so on.

  4. Describe your employees.

    You need to describe each of your employees, and you need to identify which payroll schedule they belong to. Choose Employees→Employee Center. Click the New Employee button. Then, use the tabs of the window that QuickBooks displays to provide the employee’s name, address, Social Security number, and so on. Note that you use the Payroll and Compensation tab to specify the employee’s wage or salary and to assign the employee to a scheduled payroll.