Payrolls of employees are one of the most important parts of any successful running business. Nobody wants to make any mistake regarding it but then keeping a perfect record of it is almost next to impossible and thus the reason such applications have been launched to help in the process. Among all, QuickBooks is considered the best due to its multifunctional ability and efficacy. But then using QuickBooks for this purpose will require a little guidance as such.
QuickBooks are definitely an easy availability for such performing actions. Hence to calculate payroll taxes here, one will need to follow the step-by-step method stated below. The seven easy steps are as follows:
Step 1 – Setting up the company:
If a beginner is using QuickBooks, then first and foremost, the brand needs to be appropriately aligned with the IRS. They will be providing you with an Employer Identification Number, also called EIN. This EIN is an individual code that will be different for each employer. This application of registering with IRS is not only free of cost but can also be availed through any media.
Step 2 – Fill up the W-4 form:
Once the EIN number is obtained, you become authenticated. Next, you will need to be gathering the various aspects of your employer’s payroll. This can be done by making them enter their details on the W-4 form. This form will collect all the needed information. In the case of the presence of Freelance workers or independent contractors, instead of the W-4 form, Form-1099 needs to be filled up.
Step 3 – Navigating the way:
You open the QuickBooks application and click on the ‘Dashboard’ option. From the drop-down, select the ‘payroll’ option. From the ‘payroll’ option, you will find three options again, among which you’ll have to choose ’employees.’ As soon as you choose ’employees,’ a new page will browse where you will find the option ‘get started.’ To comprehend your need, QuickBooks error will ask you few basic questions just after you have clicked on ‘get started.’
Step 4 – Feeding in the right information to QuickBooks portal:
By now, you have in hand all the required details to process the payroll taxes, i.e., you have both the business and employee information ready to be used. So, one by one, you will have to choose ‘add employee’ and put in the associated data on QuickBooks properly.
Step 5 – Select the desired schedule:
The advantage with QuickBooks Services is that they serve with a number of payroll session options; the four are – Monthly Pay, Semi-monthly Pay, Biweekly Pay, Weekly Pay. Now according to the dates, the costs and benefits will differ. For the monthly payment, the period is 12, 24 for semi-monthly, 26 for biweekly, and 52 for weekly. Hence you will have to choose one suitably.
Step 6 – Recheck the data given to the software:
This is one of the most fundamental steps in the entire process. Although QuickBooks is amazingly arranged still once you open it up, you will automatically get to know that there is a lot to be filled up that too with critical details like wages, bonus increments, etc. And if anyone numerical turns out to be wrong, the entire calculation will be counted as faulty hence it is very important to cross-check all the data.
Step 7 – Calculate the payroll taxes:
After the details are fed in from here, QuickBooks will take control of all the fields since it has its inbuilt calculating system. After filling up, you need to click the ‘send’ or ‘run’ button, and QuickBooks will give you a chance to review, and only when you click on submit the process begins.
Immediately when QuickBooks starts to perform, your employee will get their amounts on those decided dates. This eases up the entire work of maintaining, keeping an eye on, and calculating everything. From the next time, you might only have to feed in the details and press the ‘run’ or ‘send’ option.
Step 8 – Going through the results once again:
Though whenever you are choosing a payroll provider, you will definitely take into account its authenticity and efficiency, yet it is still major times advised that once the process ends, you look through the entire thing once again. This gets to ensure you that no sort of mistake has been made. Always glance through the entire result once before dismissing it. This will keep you from carrying on any error.
Undoubtedly many other providers alike are present but choosing QuickBooks is because it manages a number of flat-rate taxes like Social Security, Medicare, and other taxes as well. Hence if you intend to shift your focus to other aspects to flourish your business, you will definitely need to get hold of QuickBooks to take up the payroll taxes department.