QuickBooks Tip: Properly Recording Outsourced Payroll in QuickBooks

checking account

For salaried employees, you won’t see the hours worked, just the total amount due to be paid for that period. Before you can set up and do payroll in QuickBooks, you need to have both employer and employee details on hand. Here is a checklist that you can use to ensure you have both the employer and employee data needed. Categorization and specifications are the mandatory options in case of avoiding any sort of confusions in payroll services. In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.

Payroll Outsourcing In 2023: The Ultimate Guide – Forbes Advisor – Forbes

Payroll Outsourcing In 2023: The Ultimate Guide – Forbes Advisor.

Posted: Sat, 07 Jan 2023 08:00:00 GMT [source]

I am just building a quick IIS server on a spare desktop for a quick HTML/PHP forms Intranet. Selecting the sub-account before logging into the original account is how you add a sub-account. Are you struggling to get customers to pay you on time, or… I’ll suggest contacting an accountant to assist you further with the best action for your business. It’s possible that there are lacking information when recording your Journal Entries . I’d also suggest consulting your accountant for the accounts affected.

Frequently Asked Questions

Manually recording the payroll expenses will affect your books. You can check out this article that will give you more information on how to set up payroll manually. Enter a check to a vendor to match the name of your outsourced payroll company.

Follow these on how to do payroll in QuickBooks Online. In the “How much do you pay ” section, you can click the “add additional pay types” for any employees who require it. Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll. In this part you can add all the taxes, their expenses and operating costs. We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries.

Delete an employee in QuickBooks desktop and online

Prior to becoming a writer, she worked as an HR specialist at several multinational companies. Go to your “Payroll” dashboard and click the “Run payroll” button located in the right-hand corner of the screen. If you are converting to QuickBooks Payroll in the middle of a calendar year, you should enter the total sick and vacation hours an employee had from your previous system. Robie has more than five years of content writing experience and specializes in writing about payroll and human resources software for small businesses. It is the category in which these deducted payments get paid out you will automatically relive the liability.

manually enter payroll

Moreover, you have to get to know about the expenses or net income and about all the categories. Once you get a classification and specification you can done the Record Outsourced Payroll in QuickBooks with perfection and with ease. There are many online sites where you can get payroll services and one among them is QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts. For selecting the file, click on “select your file,” Alternatively, you can also click “Browse file” to browse and choose the desired file. You can also click on the “View sample file” to go to the Dancing Numbers sample file.

Is QuickBooks Payroll Right for You?

Gross payroll is the total amount you pay your employees BEFORE deductions. This can be a mixture of payroll expenses and liabilities such as taxes, health benefits, 401 contributions, etc. Hit Preview Payroll to look at each one before doing the final confirmation. Even though your employees’ information will be automatically added from Step 4, it’s important that you do review each time in order to lower any chance of mistakes. This step is also where you’ll enter and confirm your hourly employees’ hours worked. If you’ve paid an employee within the last calendar year, you’ll need to add some year-to-date payroll information to keep your W-2 forms accurate.

You also want to review the JE you’ve recorded through Journal Reports. Just click Reports from the menu and select Accountant & Taxes. While these questions will help match you with the right plan, you also have the option to manually select one of its three payroll options yourself. QuickBooks will recommend the best payroll plan for you, and you can even sign up for a 30-day free trial.


I have seen far too many bookkeepers complicate handling the payroll taxes portion of payroll. Record the employee taxes portion as a positive number and hit the appropriate payroll liability account or accounts. Record all employer payroll taxes as a positive number and hit the appropriate payroll taxes expense account or accounts. By following these seven simple steps, you can get your account set up and your payroll processed in just a few minutes. QuickBooks Online users don’t need to search for another provider to find the right payroll solution for their business. Net Vs. Gross Payroll – Keep in mind, it is key to understand the different between gross and net payroll.

If this is your first time ever doing payroll and you need a bit more help with those steps, check out our article on how to do payroll for a general overview. If you use QuickBooks for accounting and another service to run payroll, you still need to keep track of those paychecks in QuickBooks. We call paychecks made outside of QuickBooks with services like ADP or Paychex third-party paychecks.

Afterward, select a type of account from the Account Type dropdown menu. You can rest assured that we will work closely with you to create actionable business plans and accurate financial reporting. We offer our toolkit of financial intelligence that will be your greatest asset for business growth. Robie Ann Ferrer is payroll and HR expert at Fit Small Business, focusing on software.

For example, if you use an Accrual Based accounting practices you would date your payroll entry on the pay period end date. Whereas if you use a Cash Based you would date your payroll entry as the check date. Next, QuickBooks will prompt you to enter other data about your payroll. First, the software will ask you for a date to run payroll and if it’s scheduled or unscheduled. If you’re setting up a new payroll schedule for an employee, you’ll be taken to an additional screen so that you enter in the information to allow for future automation. For small business owners who don’t want to spend all day doing the accounting, payroll’s a pain.

Gusto vs. QuickBooks (2023 Comparison) – Forbes Advisor – Forbes

Gusto vs. QuickBooks (2023 Comparison) – Forbes Advisor.

Posted: Mon, 02 Jan 2023 08:00:00 GMT [source]

It’s a necessary part of hiring and operating a business but that doesn’t mean that it can’t be tedious—and easy to mess up. Luckily, there are options for sanity-saving payroll software. Today, we’ll run through how to do payroll in QuickBooks to save you the hassle of making so many mistakes figuring it out on your own. Select the checking account from which you pay your employees by clicking on it. Here’s an example of entering third-party paychecks issued on September 1 for two employees in California. From the payroll screen, you can enter hours for all hourly employees.

Journal Entry If Your Payroll Service Handles Payroll Taxes

While reviewing your payroll, make sure that you check the net pay and both the employer and employee tax amounts for reasonableness. When everything looks good, click “Submit Payroll” to complete. After you have finished reviewing your employee’s time data and pay information, click the “Preview payroll” button located at the bottom right of the screen. Once you have completed all of the necessary information for each employee, you will see a list of employees on your payroll for the year.


There’s even an option for the system to invite employees to track and record their work hours via QuickBooks Time. Note that the system will require you to input year-to-date payroll details and tax payments made for each employee later in the setup. Typically these three are withdrawn from your checking account in three separate transactions. Outsourced Payroll – Most clients that I work with utilize an outsourced payroll company.

It is a splitting payments to reconcile expenses in xero services that needs an involvement of a third-party to done it with ease and without any error. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at This feature allows you to share bills, payments, information, and much more. Highlighted below are certain tips and tricks for importing payroll data into QuickBooks. Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Online. QuickBooks will also ask you for the state in which most of your employees work.

payroll checks

I have had a lot of inquiries lately about how to properly record payroll in QuickBooks when using an outsourced payroll company. As we have stated before we highly recommend outsourcing your payroll to a trusted payroll company. Many bookkeepers that don’t know better record any payroll transactions that hit the bank account as a payroll expense and move on. Unfortunately this is incorrect and causes inaccurate financial statements.