Tips for Entering Payroll History When Switching from QuickBooks Desktop to QuickBooks Online
If you’re a seasoned employer who’s been in business for a while and using QuickBooks for Windows Desktop, you might want to import your company into QBO. In that case, your employees will appear in QBO; but, assuming you intend to use QBOP, you’ll have some setup work to complete — and, as you’ll see, the Payroll Setup Wizard walks you through that work. Entering payroll history is where things differ for the “newly in business.” Those new in business don’t have any payroll history to enter, so the treatment for entering payroll history is light.
But for those who have been recording payroll in QuickBooks Desktop, you’ll find the QuickBooks Desktop Payroll Summary report most useful because it contains all the information the Payroll Setup Wizard needs to establish your payroll history information. Using the information on the Payroll Summary report, you enter, for each employee for the current year, total wages, deductions, and taxes for prior quarters.
Using the same report, enter the same information for the Year-to-Date as of Today column presented by the Payroll Setup Wizard. Last, seasoned employers enter prior payrolls, totaled for all employees, once again using the Payroll Summary report from QuickBooks Desktop.
You enter the total payroll for each pay period in the current quarter. As you enter these numbers, you are entering information paid to all employees (not individuals) for the date — which makes the task less onerous because there’s less data entry. Similarly, you enter total taxes paid by tax for that pay period.
And, because you’ve been paying employees, you’ll also need to enter information about prior payroll tax payments you made during the current payroll year to reconcile the payroll tax history.
You can use the details in this Intuit article to help you complete your company’s setup after you import it.