How do I set up Payroll?
Do you want to know how to set up payroll in QuickBooks?. If yes, then First, you need the figure out how to get them paid, and after that, you hire your first employee and checking the basic payroll requirements in the company file. We are using the three-way to approaching the payroll processing- First Do payroll yourself, use payroll services like Square Payroll and hire accountants.
You are ready to hire a few new employees but this is a big milestone for you and you have created a job for someone else.
QuickBooks Payroll Taxes
Payroll taxes are government, state and local taxes withheld from an employee’s paycheck by the business. They include Income Tax, Social Security, and Medicare. In order to properly calculate what your payroll taxes ought to be, you have to realize the present assessment rates. For example, the Social Security charge for 2016 is 6.2% and the Medicare charge rate is 1.45%. The rates are resolved on a yearly basis.
If you need to realize how to process payroll yourself, read below.
QuickBooks Payroll Yourself
Step 1: Have all employees complete a W-4
Employees need to complete Form W-4 to document their filing status and keep track of personal allowances. The fewer payroll taxes take out of their paycheck each pay period.
Step 2: Finding and sign up the Employee Identification
Make sure you have your employer Identification number ready, and Employee identification number (EIN) is kind of like an SSN for your business and is used by the IRS to identify a business entity and anyone else who pays employees.
Step 3: Choose your Payroll schedule
QuickBooks Payroll using the register for your Employer Identification Number, get insurance and display workplace poster. You need to add three important dates to your calendar: employee pays dates, tax payment due dates, as well as tax filing deadlines.
Step 4: Calculate and withhold income taxes
Your employee pays by using the IRS Withholding Calculator and your state’s resource or a reliable paycheck calculator. It is coming time to pay your employees and you must also keep track of both the employee and employer portion of taxes as you go.
Step 5: Pay taxes
You need to submit your federal, state and local tax deposits, as applicable(usually on a monthly basis).
Step 6: File tax forms & employee W-2s
Don’t forget about preparing your annual filings and W-2s at the end of the year. This is not an exhaustive list of your responsibilities as an employer. Be sure to go over federal and state requirements or consult with a professional.
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