How to setup payroll in QuickBooks

How to setup payroll in QuickBooks:

  • In the navigation bar Click employees.
  • Click turn on payroll.

Note: That you need to have master administrator or company administrator privilege in QuickBooks to turn on and use payroll.

Configure Rules

  • Once you activate payroll page loads click start your free trial.
  • on the welcome dialogue box Click
  • Go to the company menu with the gear icon and select payroll settings under settings.
  • On the company profile page you can fill in details about your business such as business address, phone number, type of business, website, email id, stitchery registration number etc.
  • Be sure to save any changes you have made click configure rules in the left menu.
  • Here you can select a whether login to the employees self service portal is using employee email or employee id.
  • QuickBooks can generate employee code automatically if you prefer.
  • Click advance rule to see even more options.
  • Scroll down and click save button.

Create Masters

  • Masters are list elements such as department, designation, which you can setup and subsequently choose when creating when creating employees.

Locations

  • The locations page allows you to to include multiple locations of your operations.

Bank

  • On the bank page add details of the businesses bank accounts that will be used to pay employees.

Leaves

  • On the leaves page you can create various types of leaves and rules associated with them.
  • LOP or Loss of Pay is a default leave type auto created by the program.
  • As an example we will setup earned leave click Add leave.
  • Enter a name and abbreviation for the leave.
  • The abbreviation is used in payroll reports.
  • Select the credit frequency and the day on which to apply the credit.
  • Enter the number of days to be credited.
  • Enter encashment and carry forward specifications

Rules

  • Under the rules tab there are various other rules you can apply.

Applicability

  • Under the applicability tab enter criteria for the types of employees the leave applies to
  • Check select all in checkbox.
  • Click permanent from the checkbox.
  • Now click on the save button.

Holydays

  • On the holydays page you can setup all the days off including weekly days off as well as annual holydays.
  • Click on weekly holiday tab and select days and click on save button.
  • Now go on general holyday tab and select date and type holyday name after then click on save button

PF Rules

  • Under the PF Rules tab fill in all the details.
  • First select effective date.
  • Enter restricted Basic Salary.
  • Now enter the EDLI charges.
  • After this enter the EDLI admin Charges
  • Click on the Save Button.

Salary Components

  • On the salary components page you will see all the typically used standard components
  • You can add additional salary components by clicking new.
  • Enter a name and abbreviation for the salary component.
  • The abbreviation is used in payroll reports.
  • Go through the remaining detail and click Add when finished.

Now let’s adding your employee

  • Click Add Employee.
  • In the first page enter all the employees’ personal detail on the first page such as name, address, DOB, etc.
  • After filling all detail click on Next Button.
  • The second page has field for all official details such as joining date, job type, payment mode, etc.
  • On the third page select if the employee has PF or ESI eligibility.
  • On the fourth page, enter leave details.
  • On the fifth page enter the CTC amount and click calculates.
  • All the components are automatically calculated and scroll down.
  • Now click finish and the new employee has been added to the payroll.
  • Once your employees are the setup you can run payroll click on run payroll.
  • Check attendance in case any leaves need to be applied.
  • Click Next to make any payment adjustments needed for a single employee or for all employees.
  • For example, we are adding incentive to the current month’s salary.
  • Click on + Button on the right corner and select employee Wise Pay adjustments.
  • Here Add Employee Adjustments dialogue box appears.
  • Select an employee from the list and enter the amount.
  • Now click Save button and after that click
  • Double click on employee in the conform payroll grid.
  • The employees pay slip preview shown.
  • Now click OK and Next
  • Once your payroll is completed you can download salary register as an Excel worksheet click
  • The employee’s page updates to reflect the latest payroll click preview payroll.
  • Select a month double click in the entry to preview the pay slip you can also download the pay slip.
  • click close
  • Click the arrow next to run payroll a select unlock select the month and variables that you wish to lock.
  • Under recent transactions, you can see that a journal entry has been made for the payroll that was just run.
  • QuickBooks Payroll Technical Support