Payroll requires countless details about each employee. QuickBooks Online will walk you through the process of entering them.
If you’ve only been on the receiving end of a paycheck, you may not know just how much prep work went into your neatly-organized paystubs. Those official-looking columns of numbers that described how much you earned and how much was taken out — and for what purpose — were the result of a tremendous amount of data entry when you were hired.
Now it’s your turn to discover how complex that recordkeeping task is. QuickBooks Online was designed for small business people who weren’t schooled in the intricacies of double-entry accounting, so it simplifies the process of preparing for payroll as much as possible. Still, it will probably be the most challenging element of your web-based bookkeeping.
We can help you navigate these sometimes-choppy waters so that you’ll be ready to run your payroll with confidence. Here’s an overview, though, of one of the most critical steps: creating employee records comprehensively and accurately.
Just the Facts
The left vertical toolbar in QuickBooks Online contains a link for Employees. This is where you’ll add and edit staff records. Once you’re set up and have begun running payrolls, the page that this link opens will display your current year’s payroll cost totals. There will also be a list of employees and their pay rates and payment methods; you’ll be able to click on their entries to view and edit their record details.
To get started, though, you’ll click on Add Employee. This opens a page that asks for the individual’s:
- Full name,
- Withholdings (you’ll enter W-4 information here),
- Pay frequency,
- Pay type and amount (multiple options are available here besides salary and hourly),
- Deductions (retirement, health care, etc.), and
- Pay method (check or direct deposit).