If most of your employees are subject to the same miscellaneous state or
local taxes, you can add those taxes to the employee defaults. QuickBooks then
prefills the taxes when you set up the payroll records for individual
You need an "other" tax payroll item for each miscellaneous state
or local tax you add to your employee default setup. If the payroll item for
the tax you want is not listed, click from the drop-down list.
When you have set up the "other" tax payroll item, QuickBooks returns
you to the Taxes window.
Have you set up payroll items?
QuickBooks uses payroll items to track individual amounts on a paycheck and
accumulate year-to-date wage and tax amounts for each employee. There are
payroll items for compensation, taxes, other additions and deductions, and
employer-paid expenses. You can assign these payroll items to different
accounts as needed.
When the payroll feature is turned
on, QuickBooks creates payroll items for federal taxes and advance EIC for you. To fully track your
payroll, you may need to add more payroll items to the list. For example, you
can add payroll items for state withholding, state disability, state
unemployment, other state taxes, local taxes; employee deductions of any kind;
additions (such as employee loans); commissions; and company-paid expenses
(such as company-paid health insurance).
Setting up common
payroll items easily
To do this task
Click Employee Center.
Click Manage Employee Information at the top of the list and click Change New Employee Default Settings.
Click the Taxes button and click the Other tab.
Click the Item Name drop-down list and choose the tax you want to apply.
Fill in the fields for this tax only if the information applies to most (or
all) of your employees:
If you are not asked for the tax rate, QuickBooks already has the rate in
its tax tables. You can receive regular payroll updates, which include current
tax tables, when you subscribe to QuickBooks Payroll. To learn more about QuickBooks Payroll, display the QuickBooks Payroll web site.
Click the Employees menu and then click Payroll. What if the menu item isn't there?
You either already have an active QuickBooks Payroll subscription or have configured your company file to process your payroll manually, without a QuickBooks Payroll subscription. To learn about your payroll options in QuickBooks:
Go to the Employees menu, click My Payroll Service and click Change Payroll Service Options. (Skip step 2.)
Go to the Employees menu and click Payroll Service Options.
Click Learn About Payroll Options.
If your employees are subject to taxes for different counties, cities, or
school districts, you can customize the information when you set up the payroll
tax information for each employee.
For additional information that will help you fill in the fields, go to the Payroll Tax Compliance page.
If most employees are subject to a second miscellaneous state or local tax,
choose a second tax on the next line. Fill in the fields only if the
information applies to most or all of your employees. Click the name of the tax
to display the fields for the tax.
Do one of the following:
To continue entering tax information, click either the
Federal or the
If you have no more tax information to enter, click OK to return to the
Employee Defaults window.
Setting up your employee defaults
Entering benefits and other adjustments (employee defaults)
Entering federal tax information (employee defaults)
Entering sick and vacation time information (employee defaults)
Entering state tax information (employee defaults)
Entering wage and salary information (employee defaults)