Payroll Setup

1. Payroll Setup 2014

2. Topics • Checklist for Setting up Payroll • Payroll Accounts • Payroll Items • The Payroll Setup Interview • Setting Up Employee Defaults • Employee Reports

3. Payroll Options in QuickBooks Four payroll choices : • Basic Payroll • Enhanced Payroll • Assisted Payroll • Full Service Payroll

4. Checklist for Setting up Payroll • Gather information about each of your employees • Activate the Payroll function • Set up payroll accounts • Enable your QuickBooks file for payroll processing • Use the Payroll Setup Interview • Add additional payroll items directly into Payroll Item List • Edit payroll items to modify the vendor information and the way it affects the Chart of Accounts • If setting up mid-year, enter year-to-date information for each employee and enter year-to-date liability payments • Verify payroll item setup, employee setup, and the vendor list • Proof your setup.

5. Payroll Accounts • Payroll Liability Accounts • Payroll Expense Accounts

6. Payroll Items

7. The Payroll Setup Interview • This Interview is optional, but very helpful and works even if you have existing payroll • Starting the Payroll Setup Interview: • Select the Employeesmenu, select PayrollSetup

8. Setting up Compensation and Benefits Payroll Items

9. Medical Insurance Three ways to allocate costs between the company and the employee: • The company could pay the entire expense • The company and employee could share the expense • The employee could pay the entire expense If the costs are shared between the company and the employees, or if the employees pay for the entire cost via payroll deductions, use a Deduction Item to track the deductions

10. Medical Insurance Payroll Deduction

11. 401(k) Employee Deduction and Company Match Items • If you have a 401(k) plan, you can set up Payroll Items to track the employee contributions (salary deferral) to the plan

12. Paid Time Off Payroll Items • The Payroll Setup Interview will walk you through creating items to track and pay vacation or sick pay • If you have a “Paid Time Off (PTO)” policy instead of separate sick and vacation time you can use either Sick or Vacation time to keep track of PTO.

13. Setting up Employees • After you have set up your Payroll Items, you can set up each employee’s payroll record.

14. Payroll Tax Item Setup

15. Vendors for Payroll Tax and Withholding Items To set up vendors for payroll liabilities, continue with the payroll Setup Interview

16. Setting up Year-to-Date Payroll Amounts • If you are setting up your own payroll in the middle of the fiscal year, you’ll need to enter the year-to-date payroll information for each of your employees before entering your first paychecks

17. Setting Up Employee Defaults • Default settings for each new employee

18. The Employee Contact List report • To view all employees, including deactivated employees, display the Employee list and click the Include inactive box

19. Chapter Review • Checklist for Setting up Payroll • Payroll Accounts • Payroll Items • The Payroll Setup Interview • Setting Up Employee Defaults • Employee Reports