Doing payroll in QuickBooks
Doing payroll in QuickBooks How to do payroll: Manually
Calculating withholding taxes, employee net pay, and payroll taxes is no easy task, but it’s required of every business owner with a workforce. If you plan to save on costs and put your brain to work, use the following steps to know that Doing Payroll in QuickBooks Manually helps or not
Step 1: Gather your tax information
If this is your first time running payroll, you’ll need to set up an Employer Identification Number (EIN) with the IRS. Your EIN is a unique number that identifies your business. The application is free and can be accessed online, by mail, or by phone.
Step 2: Have your employees fill out a Form W-4 (Employee’s Withholding Certificate)
Once you have received your EIN, you will need to collect relevant tax information from your employees. All of the information you’ll need exists on Form W-4. Distribute these tax forms to your workforce. If you have independent contractors or freelance staff, you’ll need to distribute Form-1099.
Step 3: Determine a payroll schedule
There are four different schedules you can choose from weekly, biweekly, semiweekly, and monthly. Each comes with different advantages and disadvantages, costs, and payroll dates.
Step 4: Calculate gross pay and withhold income taxes
Gross pay is the number of hours an employee has worked within a given pay period multiplied by their hourly rate. These payroll calculations are most easily tracked in spreadsheets.
Step 5: Pay payroll taxes
Part of processing your own payroll is calculating payroll taxes that have to be withheld from employee paychecks.
Step 6: File and report your payroll
After distributing your employees’ paychecks, you’ll be tasked with filling, paying, and reporting payroll taxes to the IRS
Step 7: Keep well-maintained payroll records
A key piece of the payroll puzzle is keeping organized and accurate records. You’ll need to be able to reference past records, and that is only possible if you make an effort to keep all documents carefully cataloged.
Keep in mind that you will need to report new hires to the IRS. This process effectively verifies that each new employee is eligible to legally work in the United States. You will need to gather the employee’s name and Social Security number.