Payroll is an important feature in QuickBooks, Using this payroll attribute you can simply enter in hours, It also reviews your payroll tax calculation and pays by direct deposit or print checks also. In this blog, we explain how to set up and change Employee’s Prior Payroll in QuickBooks online? Employee’s Prior Payroll creates usually that your former employee has left the company before start using QuickBooks Payroll and If you want to comprise past data for the w2 for that employee.
If you need to add Prior Payroll into QuickBooks Online Payroll Enhanced here we explain what you need to know about Prior Payroll and displayed you how to set prior payrolls.
What you want to know about Prior Payrolls
You can enter prior payrolls if you have paid wages during the current calendar year before using our online payroll services. This ensures that exact year-to-date totals on your pay stubs going forward, and correct w2 information at the end of the year.
If you Don’t have to enter Prior Payroll Then:
Some points when you don’t enter in QuickBooks Employee’s Prior Payroll are:
- You are new in business and paying employees for the first time.
- Otherwise, you are an existing business but running your first time payroll of the calendar year.
- You have recently changed your business entity and running the first payroll for the new entity.
Setup Payroll with QuickBooks Online Payroll
If you get set up your Employee’s Prior Payroll in QuickBooks Online follow all these steps given below:
- Collect the Payroll information per employee, including terminated employees.
- Choose to edit in the Employees column and add the employee you have paid in the current calendar year, including terminated employees.
- Fill the information that required and Choose the Continue button.
- Complete Tax Setup you have to enter prior payrolls.
- Select the answer to the following question:
Have you paid any w2 employees in the Year?
- No, I Have not paid any employees in this year: Do nor Select the option unless you have not paid employees this year. Select the option will bypass the prior entry screens and you will not calculate accurately and this results in penalties.
- Yes, I have already Paid employees this year: Select this option if you have paid employees this year. you will give the opportunity to enter the prior payroll details.
- No, I have Paid 1099 contractors, but not w2 employees: Select this option if you currently do not have w2 employees and pay 1099 contractors only.
How Did You Pay Your Employees?
- Paychecks: In the next section, you can use the payroll and tax reports you have to consider from your previous payroll provider to enter the payroll details for the year.
- Lump-Sum payments: If you have paid employees with a lump sum and have not withheld taxes you must contact payroll support before proceeding. An agent will help you to locate resources you will use to calculate the amounts you should have withheld.
- Choose the Employee name to start entering Prior Payroll.
- Select Yeas if you have paid to the Employee on the given date range, or no if you have not paid.
- This steps Depending on your answer in step 7, you enter the YTD (year-to-date)total employee. Use the Payroll detail report if you have collected from your previous Payroll provider and select continue.
- After entering prior payroll to all employees, you have to select Done with Employee Totals.
- Then Enter Company Payroll Totals, these are the total payrolls of employees you have paid broken down per date and select continue.
- Enter YTD totals for Company-Paid Taxes and Select Continue button.
- Now you start running your first payroll and select to Continue.
Payroll Features Into QuickBooks Online:
Now we explain the payroll features in QuickBooks online points are below:
- Setup in Some minutes.
- Run Payroll.
- Calculated your Payrolls Taxes.
- Setup Automatic reminders.
- Basic Payroll Inside the QuickBooks.
- Unlimited Payroll.
- Payroll Report.
- Payroll Taxes and year-End w2.
- Live Payroll Experts.
Time-Saving Features of Payroll in QuickBooks Online
Now, we define the time-saving features of payroll QuickBooks online using this payroll now you save you time features are:
- Manage and Pay bills.
- Send Unlimited Invoices.
- Pay file Taxes from QuickBooks online.
- Print and ready 1099s.
- Track Inventory.
- send and makes purchase orders.
- Clients can run payroll, anytime and anywhere with the online payroll mobile application.
- Track income and expenses.
12 Easy Steps to Enter Employee’s Prior Payroll:
The basic steps we define in this blog, using these simple steps you easily set up and edit Employee’s Prior payroll points are given below:
- Firstly you Click on the Employee’s Tab.
- Then click on the name of the employee.
- After that, you scroll down the button and click on the enter prior pay details.
- Click on Yes.
- Then click to next.
- Enter the YTD (year-to-date) as of today for this employee.
- Click to Next.
- Enter the YTD (year-to-date) as of the previous quarter for this employee.
- Click Next.
- Then Click to additional pay date and enter the company details and each payment date for the current quarter also.
- You start with the first page and date of the Quarter.
- After that, you enter all the details of the employee per pay date.
- On the paychecks history, you enter totals of the taxes from previous provider reports.
- At last click on the Done button.
Employee’s Prior Payroll helps to access the QB online in an efficient way and it makes your reports, summary of the report, wages, and tax reports. It also helps to review the payroll tax calculation and pay the direct deposit by printing the checks. In this blog, we have already discussed how you can set up and change Employees’ prior payroll.
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