If you are switching from an outside payroll service to tracking your
payroll in QuickBooks, you need to enter some data from your payroll service
Payroll information from your payroll service is usually in the form of
company taxes grouped together by pay period, rather than by employee. When you
set up payroll in QuickBooks, you need to enter payroll information about both
employee and company taxes grouped by each employee.
Use the payroll setup
interview to set up payroll in QuickBooks.
When you begin summarizing
year-to-date amounts, group the company-paid taxes by employee.
For example, enter the tax amounts for the first employee on the list. Then
go to the next pay period for the same employee, and so on, until you get to
your final pay period for the year. Repeat this process for each employee.
For company taxes that have a matching employee tax (generally Social
Security and Medicare taxes), look at the tax amounts for the company to figure
out the same tax amounts for each employee.
For other company taxes and employee taxes, add the gross wages for each
employee and calculate the amount based on the rate of the tax, observing the
Generate payroll summary
reports for the same time periods as your reports from the payroll
Compare the QuickBooks reports with your reports from the payroll service.
If there are any small differences due to rounding errors,
create a company liability adjustment.
If there are large discrepancies, you may have missed an employee's data or a
payroll run when you were calculating the amounts.
How an outsourced payroll service differs
from QuickBooks Assisted Payroll