Every business manages payroll, and payroll is one of the most important parts of a business. So, businesses turn towards payroll software, and most businesses choose QuickBooks Online Payroll. Payroll processing in QuickBooks Online is a simplified process that saves small business owners time and ensures compliance with tax rules. QuickBooks Online Payroll is considered one of the best payroll software solutions that facilitates businesses in paying employees smoothly. But new users may face difficulties while running payroll in QBO. So, in this article, we will guide you through how to run payroll in QuickBooks Online.

Define QuickBooks Online

QuickBooks Online is a platform that assists companies with financial management and provides users with advanced features. Users can manage records, income, and expenses; make and send invoices; manage cash flow; and track payroll. They can access their accounts anytime and anywhere from a computer or a mobile device. It helps with the business's financial reports, setting up a custom chart of accounts, bank statement reconciliations, and generating invoices and categorized expenses. QuickBooks is an internet-based application. 

What is Payroll in QuickBooks Online?

QuickBooks Online Payroll is an end-to-end, software-as-a-service solution designed to systematize the way you pay team members. It combines directly with your QuickBooks Online account so that your payroll payment, tax payable, and bank transactions sync instantly with your set of master accounts.

How to set up payroll in QuickBooks Online?

If you’re familiar with QBO, arranging payroll is easy. The following is a step-by-step process for setting up payroll in QBO.

Step 1: Select the Appropriates Quickbooks payroll expansion 

Before configuring payroll, you will first choose which payroll expansion is  most suited for your workloads 

QuickBooks has three key expansions available as follows.”

• Core

• Premium

• Elite

Select the correct payroll expansion plan as per your plan. business needs and subscribes to QuickBooks Online accordingly 

Step 2: Sign up for Payroll in QuickBooks Online

When signing up for the payroll plan, ensure that you create a payroll account in QuickBooks Online.

• Register for QuickBooks Online:

• Click on the "Get Started" button

• Provide the details regarding your business

• Provide payroll tax information

• Configure your payroll preference settings

How to do payroll in QuickBooks Online?

Managing payroll in business requires too much attention to all areas, such as accurate employee information, calculating wages, and correcting bank account details. So, all businesses need to learn how to run payroll in QuickBooks Online. You can do payroll in QuickBooks Online in easy steps.

Step 1: Go to Payroll and Confirm Employee Information

You can see the name of each employee, their pay rates, pay method, and employee status. You could also add a new staff member in this step. Once you confirm all the information, click the button “run payroll.”

Step 2: Verify the Additional details like salary, memos, and hours

QuickBooks Online requires you to confirm additional details to make sure the pay rate is accurate for each employee. If you already submitted the data for daily hours and working days per week. Here will be the total number of hours completed. On their profile page, you can easily check and edit their salary details. If you ensured that the annual salary amount is correctly entered or not.

Step 3: Preview Payroll

Select the “Preview Payroll” Button and double-check before you finalize the payments to be sure everything is in order  

Step 4: Submit Payroll

This is a crucial phase that merits more attention. For this step, either select "pay now" or "save and pay later." If everything is correct, it's time to “run payroll.” To complete the processes, just click “SUBMIT PAYROLL.” 

Step 5: Fix Errors

Review each entry to identify the variation that contains the error, and correct payroll errors in QuickBooks as they happen. Notice the variables that caused the errors, e.g., wage amount. Go to the payroll entry that you want to correct. Make your connection directly or reverse the transaction if needed. And last, don't submit the new entry until you have checked it.  

What is payroll tax compliance?

Keeping track of payroll tax rules and regulations is no easy task. QuickBooks Online Payroll keeps on top of these tasks and helps your business avoid tax-filing penalties by ensuring tax returns are filed on time. QuickBooks preserves your business tax history, so in case of an audit or future reference, its task records are ready to go. QuickBooks Online Payroll adjusts to tax regulations to ensure your business is compliant. Integration with QuickBooks

Conclusion

In conclusion, we want to say that QuickBooks Online payroll is easy to use and effective for managing payroll, which it does by having companies pay employees accurately, handling tax issues, producing pay slips, and doing payroll record keeping. It also includes automated features for payroll processing, tax compliance support, and accounting integration, which in turn increase efficiency. Although there are some cons to it, QuickBooks Online Payroll is still a great option for companies that like a simple and organised payroll solution