Every business person must be aware of their taxes or invoices. You have to know about QuickBooks payroll taxes and tax tables. Setting up payroll taxes in QuickBooks Desktop is an essential step to help your business with federal, state, and local tax regulations. In this blog, we will provide vital steps to set up payroll taxes in QuickBooks Desktop and how it’s beneficial for your business.
You can automate tax calculation and reduce the chances of errors by using QuickBooks Desktop. Before going to the steps, you will need to sign up for one of QuickBooks’s payroll plans, like QuickBooks Basic Payroll, QuickBooks Enhanced Payroll, or QuickBooks Full Service Payroll. Also, you can choose appropriate plans that suit your business by contacting a Intuit‘s certified QuickBooks ProAdvisor.
Benefits of setting up Paroll Taxes in QuickBooks Desktop
Business owners can pay their employees at the right time with the help of payroll software like QuickBooks. Payroll is an extremely wild task that requires all the attention of a business owner. To be able to use the latest tax regulations and labor laws, a person must have some knowledge about them.
Now, take a look at the advantages of payroll taxes in QuickBooks Desktop:
- Employee data is centralized, such as job status and pay rates.
- Users can control missing payments or due dates by getting payday reminders.
- Payroll tax calculation services that contain automatic tax analysis, payment, and filing.
- Tracking, seamless management, and explanation of benefits for employees.
How to Set Up Payroll Taxes in QuickBooks Desktop?
Follow the steps to set up payroll taxes in QuickBooks Desktop:
Step 1: Choose the Tax Center of the Payroll
- Firstly, you have to find the tax option from the main menu.
- Then, if you haven’t QuickBooks Payroll Online application, install it.
- After that, navigate to the app and check whether the payroll tax option is selected or not.
- After analyzing, the QuickBooks team will provide you with complete support.
Step 2: Set up Taxes with the Payroll Agreement
A list of all employees will be shown on the screen in front of you. You have to enter a particular date of birth. The hire date of the employees has to be entered into payroll as well. Employers must configure payroll compliance and taxes to ensure all information from the W-4 form completed by employees is processed correctly.
Step 3: Provide Company Details
- Business address: Type in a company’s new address, or it will be completed for you.
- First Employee Hiring Date: Click Yes if the employee was hired in the last six months, otherwise No.
- Business Name: Type in your company’s legal business name.
- Date of First Payroll: Use the day on which the payroll will be run for the first time.
Step 4: Enter the Details Concerning Federal Tax
- Payroll Tax Forms: File the specified payroll tax form.
- Non-Profit Status: Select Yes if the company is a nonprofit. Press No if the company is not a nonprofit.
- FEIN: Do not select no if you have a Federal Tax ID readily available. Select the Tax ID number instead of that.
- Payroll Tax Forms: Submit the specific payroll tax form that has been assigned to you.
Step 5: Share the Information
- SUI: The information is assigned to each employer.
- Employer’s Account Number: The employer’s account number is separate.
- ETT: All other employees are liable to the same Employee Training Tax.
- Deposit Schedule: The payroll taxes in QuickBooks will be set up on the schedule that you need to file as an employer.
Step 6: Set up E-Pay Task
- Two payment options will be given to you. Choose the manual payment option, the e-File option, or the pay option.
- E-file and E-pay should be made automatic to avoid wasting time and effort.
- You must use the manual option if you’re paying with paper coupons, which is a lengthy and time-consuming process.
Conclusion
Setting up payroll taxes in QuickBooks Desktop is an essential part of payroll management and tax compliance. With the steps mentioned above, you can be assured that your payroll taxes are properly calculated and your company remains current with its tax requirements. Updating your tax information regularly will help you avoid penalties and save time when filing your taxes. Contact our QuickBooks Payroll Support team for more details.
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