How to Set Up & Pay Payroll Tax Payments in QuickBooks

Employers are responsible for withholding and paying payroll taxes for their workers, as well as paying their own employment taxes (Social Security, Medicare, and unemployment).

The three QuickBooks Payroll plans (Core, Premium, and Elite) make calculating and paying these taxes simple; however, there are a few steps to take first to set up tax information.

You should set up your staff in the system first if you haven’t already. Step-by-step instructions may be found in our QuickBooks Payroll Setup tutorial. If you don’t already have a QuickBooks Payroll account, you may start with a free 30-day trial. Return to this post after you’ve finished to set up your taxes.

9 Steps to Making Payroll Tax Payments in QuickBooks

1. Checklist for Payroll Taxes: What You’ll Need to Get Started

To get started, you’ll need to set up QuickBooks with the same basic information you’d provide to any payroll service:

• Every employee’s date of birth and date of hire
• Contact Information for Your Company (legal name, mailing address)
• Type of business (LLC, Sole Proprietorship, Corporation)
• Employer Identification Number (FEIN) (FEIN)
• Payroll tax form (941 or 944)
• Schedule of payments or deposits for federal tax payments
• Rates set by the ETT or by the state
• For e-pay, you’ll need your bank account number and routing number.
• Account number issued by the state
• SUI Charges

If your state levies an income or unemployment tax, these items will apply.

2. Click the Profile/Settings Button or continue the setup process.

You’ll get the choice to continue setting up or pay your team if you’ve already set up your personnel. To provide the information needed to pay your payroll taxes, choose “Continue setup.”

If you already set up your workers and are returning to complete the remaining payroll setting, go to the gear button in the far top right and choose “Payroll Settings,” as seen in the picture below.

What if I told you that even if you use payroll software, you need have a basic grasp of how to perform payroll and related rules to avoid penalties and fines. More possibilities to learn may be found in our payroll training guide.

3. Create a payroll tax and compliance system.

A snapshot and a quick description of the information you must submit about your firm may be seen below.

1. Business Name: This is the legal name of your company, which you will use on all tax returns.
2. Business address: The address you gave for your business during payroll setup will automatically fill here; if you use a different address, you’ll notice areas where you may input the right address information instead of a check mark.
3. When do you want to execute your first payroll? Indicate when you want to conduct your first paycheck. This data is crucial for keeping track of payroll tax payments. Your date possibilities will be determined by the month and year you are currently in.
4. If you recruited your first employee within the previous six months, click “yes,” otherwise, pick “no.”
5. Pick “yes” if you bought the firm from a prior owner; otherwise, select “no.”
6. Type of business: Choose the best business structure for you (Sole proprietorship, Corporation, Limited Liability Company, Limited Liability Corporation, etc.)
7. Enter the name of the person you’re placing in charge of interacting with your bank and federal tax authorities like the IRS as the principal officer title.
8. Workers’ Compensation: If your state requires you to carry workers’ compensation insurance, you’ll see a notification at the foot of this page with a link to AP Intego’s quotation request. If you already have a workers’ compensation plan, choose “no.”

One of the advantages of utilizing QuickBooks Payroll is that your monthly subscription includes tech assistance. You may contact a customer service representative by clicking the person’s image at the bottom right of the page, as seen above. Even if you’re utilizing the free 30-day trial, this option will be accessible the whole time you travel around your QuickBooks Payroll account.

4. Create a new employer.

Feature your tax rates to the default percentages based on the most recent information given by federal and state tax authorities is another handy setting QuickBooks Payroll incorporates. This eliminates the requirement for you to calculate the current tax rates. It also contains any deposit schedules that apply.

You’ll need the employee’s birth date and hiring date on hand to fill out this screen. This information should be available on the I-9 form or other new hire papers submitted by workers. You may also go at the W4 information that was submitted when your workers were set up. Simply click the “W4 info” link as seen in the image above.

5. Fill up your federal tax information

A snapshot of the information needed for federal taxes is shown below, along with a short explanation.

1. EIN: This is where you’ll provide your federal tax identification number. If you don’t have it, click “No” if you haven’t gotten it yet or don’t have it readily available. Check the box to share your information with Intuit workers’ comp partners if you’re interested in signing up for workers’ comp for the first time or getting offers that may be lower than your existing plan.

While you may conduct payroll without a federal tax ID number, you won’t be able to make payroll tax payments to the IRS without one; having this number assures that your company gets credit for any tax payments made.

1. Select the payroll tax form that you must submit with the Internal Revenue Service. Form 941, which is submitted quarterly, or Form 944, which is filed yearly, are the possibilities here. If you’re unsure which form to use, see our article on payroll tax forms to learn more.
2. Federal Tax Payments: Choose how frequently you must pay federal payroll taxes from the dropdown menu. Semi-weekly, monthly, or quarterly are the possibilities here.
3. Pick “Yes” if you are a 501(c)(3) charitable organization that does not pay FUTA; otherwise, select “No.”

6. Fill in the state tax information

A snapshot of the information necessary for state taxes, if applicable, is shown below, along with a short explanation. Because the layout will differ based on the state where you conduct business and where your workers live, skip the portions below that don’t relate to you.

If you reside in one of the seven states that do not have a state income tax (AK, FL, NV, SD, TX, WA, and WY), you will not be able to input your state withholding account number on the setup page; nevertheless, you will very certainly be asked about your state unemployment insurance rate.

1. State Employer Account Number: This is a one-of-a-kind number given to employers by the state. It’s similar to the FEIN number in that it’s used to maintain track of employer payroll tax payments. If you don’t have a state account number, you must seek one from your state’s Employment Development Department (EDD).

Filing tax returns or making tax payments without this number is not a smart idea. If you do, you risk not getting credit for the payment since the EDD will have a hard time identifying you without an account number.

1. Form W2: This number appears on state documents used to record the state income taxes withheld from employee paychecks.
2. Rate of State Unemployment Insurance (SUI): Each year, around November or December, you will get a letter from your state’s EDD, which will contain the SUI rate that has been allocated to your company for the next year. If you have not yet received this information, please contact the EDD.

Make sure you have the right SUI rate before processing your first paycheck to guarantee your payroll taxes are computed accurately. The typical rate for new employers is 2.7 percent; if you’re worried about being accountable for a bigger proportion, choose 5.4 percent for now and amend it later.

1. Georgia is the only state that charges an administrative assessment rate. For all employers having an unemployment rate between 0.04 percent and 8.1 percent, the rate is 0.06 percent. If your unemployment rate is equal to the minimum or maximum rate of 0.04 percent or 8.1 percent, the administrative assessment rate is 0%.
2. The state will compel you to pay (deposit) your payroll taxes on a monthly, semi-weekly, or quarterly basis, depending on the amount of your payroll taxes. This information should be included with your employer account number, but if it isn’t, you’ll have to contact your state’s EDD to receive it.

E-file and e-pay are included in all QuickBooks Payroll plans. When you e-pay and e-file, you will get an instant confirmation that your tax forms or payments have been filed. You will have a confirmation with a date and time stamp to establish that you filed and paid on time if there was a problem with the receipt.

You’ll need to give bank information for the account you wish to use for payroll tax payments in order to e-file and e-pay your taxes. To get started, click the green button next to “Connect Your Bank” that says “Let’s Go.”

7. Fill up your bank account information

You’ll have the chance to go over the company and principle officer information you filled out earlier in the establishment procedure. To add a new business checking account, click the + symbol next to “Add new bank account.”

A screen will appear with a list of various financial institutions. If yours isn’t mentioned, type it into the search box below, where “Bank of America” appears. Then choose the appropriate outcome.

8. Fill up your online bank account information.

To log in to your online banking account, enter your username and password. This will establish a secure link between your bank and QuickBooks Payroll, allowing it to confirm that you are allowed to access the account.

When the account is properly connected, a list of all bank accounts linked to that online banking ID will appear. Choose the account for payroll transactions from the drop-down menu (employee paychecks and taxes).

Then you’ll be sent back to the page with a summary of your company, main officer, and bank account details. You may pick the “Accept and Submit” option in the bottom right corner after you’ve input all of the essential information.

You just need to supply your e-signature for QuickBooks Payroll to legally file your payroll tax forms now that your bank account has been successfully linked and is ready to make payroll tax payments.

9. Review and approve your signature before submitting your authorization.

To get started, choose “Let’s go.”

If you submitted the Principal Officer’s first and last name previously in the setup process, it will automatically fill. Select “Verify” to have the system double-check your contact details.

Select “Continue” after entering your mobile phone number.

You should get a text message with a six-digit number that you must input. You’ll be able to e-sign your authorisation paperwork after entering the right confirmation code. To allow QuickBooks Payroll authority to conduct payroll services on your behalf, check the box displayed below. Then choose “Done.”

Congratulations! Your payroll account is now set up for e-filing and e-payment of payroll taxes.

Editing and Viewing Payroll Taxes and Forms

Now that you know how to set up payroll tax payments, you may need to make modifications to your tax arrangement or review tax forms you’ve already submitted. Select “Payroll Tax Settings” from the Gear symbol in the top right-hand corner of the site.

As seen below, the Payroll Settings will appear. Let’s take a closer look at the information available.

1. Change your business name, filing name, and filing address in the general tax information section.

2. Federal tax information: Make adjustments to your FEIN number, state account number, needed tax forms, and payment (deposit) schedule.

3. CARES Act: If you qualify, you may opt-in or out of delaying Social Security benefits until 2021.

You won’t be able to delay the employer part of 2020 Social Security taxes for any deposits due after the date of loan forgiveness if you got debt forgiveness via the Paycheck Protection Program.

You may continue to delay tax payments until the corresponding payment dates in 2021 and 2022 if you have taxes that were due to be paid on or before the loan forgiveness date.

You can see or modify more information by scrolling down.

4. Email notifications: Leave the default “Send to You” setting if you want tax payment reminders and notifications emailed to you. If you don’t want to use it, you can turn it off.

5. Data sharing: You can choose whether or not to allow employees to import their W-2 tax information into TurboTax. Employees who submit their taxes will profit from this since they will not have to input the information themselves.

You may also alter your bank account information, direct deposit funding time, paycheck printing choices, and selected payroll general ledger accounts in the appropriate areas.

Conclusion

You’re ready to run your first paycheck now that you know how simple it is to set up and make payroll tax payments using QuickBooks Payroll.

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