Filing Taxes is an important and critical aspect of any business’s annual /bi-annual must-do activities. QuickBooks Payroll is a good tool to accomplish this goal in a timely and systematic manner.
To utilize QuickBooks Payroll’s maximum capabilities, you need to ensure that that is correctly set-up. You need to begin by setting up your ‘Employees’ in QuickBooks Payroll. Then you can move to organize ‘taxes set-up.’ The article will reflect on the key aspects of managing your ‘Taxes’ in QuickBooks Payroll.
A Checklist to set-up the Payroll Taxes
- Birthdate & Hire Date for each employee
- Your business info (legal name, mailing address)
- Payroll Tax form that is required to file (941 or 944)
- FEIN (Federal Employer Identification Number)
- Deposit/Payment schedule for the federal tax payments
- ETT or other state rates
- Your bank account, routing, etc.
- Online username and password used to access the Bank Account
Note: The (*) items apply only if your state collects ‘Income Tax.’
- *The Payment/Deposit schedule for the ‘state tax payments’
- * The ‘state account number.’
- * The ‘SUI’ Rate
Below are the steps to set-up PAYROLL TAXES in QuickBooks.
Step 1- Navigate to the ‘Tax Center’
Click on the ‘Taxes’ option
Step 2- Choose the ‘Payroll Tax Centre’
Select the option ‘Payroll Tax’
Step 3- Payroll Taxes set-up and compliance
You will view a list of employees that have been ‘Set-up’
Step 4- Fill in the ‘Company Details
- The Business Name– The name that you use on the ‘Tax return filings.
- The Business Address– the address that you enter here will be automatically filled In case you are using a different address then you need to fill the info in the fields where you can enter the correct address.
- The ‘Date’ for the first payroll– Fill in the date when you plan to run the first payroll. The info is essential to track ‘Payroll tax payments.’
- The date you hired the ‘First employee’– If the first employee was hired in the last six months, then you can Choose ‘YES,’ otherwise choose ‘NO.’
Step 5- Fill in the Federal Tax details
- Fill the FEIN- First fill in the federal tax id, in case that is not there then select ‘NO.
Note: You can run Payroll without the ‘Federal Tax Id,’ you cannot submit the ‘Payroll tax payments’ without a Tax id.
- The Payroll Tax Form- Choose the Payroll Tax form that you need to file with IRS.
- The frequency of the Tax Payments- choose how often you are required to pay ‘Federal Payroll Taxes.’
- The Non-Profit status- If you do not pay FUTA and fall under 501(c)(3) non-profit business, then you need select YES, else ‘’
Step 6- Fill in the ‘State Details’
- The State employer account number- This is a unique number issued by state employers and is similar to FEIN number. The number is used to keep track of ‘Payroll tax payments’ made by employers. If you do not have a ‘State a/c number,’ then contact the ‘Employment Development Department’ for your state and request them to grant you one.
Note: It is not advisable to file tax returns or make tax payments without this number. If you file without it, then it will be difficult for the ‘Employment Development Department’ to identify you without it.
- SUI (State Unemployment Insurance) Rate- Each year around November or December you get a letter from EDD for the state, and this includes SUI rate given for your business for the coming year. The SUI rate is essential before you process your first payroll.
- The employment training tax- it is mostly the same for employers in the same state. The field will be filled with the state where your business is.
- Deposit schedle- By ‘Payroll Taxes,’ the state will need you to deposit the taxes monthly, semi-weekly or quarterly.
Step 7- Set the ‘E-Pay and E-File’
The next step is to set-up the payment mode.
- E-pay and e-file- You can electronically file tax forms and do tax payments. Once you do payment via this method, you get a submission confirmation for the tax forms/payments.
- Manual mode with paper coupons- The option will allow you to make payments via check & submit paper coupon. The company will get credit for filing taxes and making timely payments.
Step 8- Pay Taxes
Once the set-up is finished, you can go back to ‘Payroll Tax center’ by clicking the -Gear Icon and Choose Payroll settings.
Edit/View Payroll Taxes and Forms
Once the payroll tax payment been set up, there might be many scenarios where you need to view or change/edit the existing setup. To Edit this section
Click -Gear Icon and choose Payroll Tax Settings
The Payroll Tax Centre will display :
- Edit E-file and e-pay setup– You can make the required changes for how to file/ pay your taxes. You can also edit the ‘Bank Account’ from your taxes are withdrawn from.
- Edit the Tax set-up– Make the required changes related to FEIN here.
- View the tax liability– Now review this report to view how much you owe by the tax type & entity.
- View tax payments made– You can view the details of tax payments that have been done in this section.
- Enter previous tax history– If you have navigated from one system & have already made the tax payments, then you need to enter the info here so that returns/payments are correct.
- The Quarterly forms– You will see the completed ‘Payroll tax forms’ due on a quarterly basis in this section.
- The Annual Forms– Here are forms that are due on an annual basis.
- The Employee Set-up– If you give or want I-9 or W-4 forms, you see blank copies here.
- The Employer Set-up– If you have to apply for FEIN or the State Employer Account, then the applications are available here.
That concludes the process for managing taxes in QuickBooks Payroll. The article is quite comprehensive and is a complete guide to ‘Set-up payroll taxes.’ If you get any issues to any of the points above, Get instant tech assistance at QuickBooks payroll support phone number 1-888-412-7852 (Toll-Free).