To enable Payroll features in QuickBooks, you need to purchase a subscription of the same. Once you’ve purchased a subscription, then you need to activate the feature in QuickBooks desktop. After that, you can record employee data, deposit payroll and file taxes online. MyOnePro explained earlier how to go for QuickBooks Desktop 2021 With Payroll, now find out information related to QuickBooks 2021 enhanced payroll.
- 1 Requirements To Enable Enhanced Payroll In QuickBooks
- 2 Paying Employees with Enhanced Payroll QB
- 2.1 How To Pay Employees Using QuickBooks Enhanced Payroll?
- 2.2 Information Required To Enter IN QB Enhanced Payroll Subscription
- 2.3 Connect Bank Account with QuickBooks
- 2.4 Verification of Bank Account
- 2.5 Enable Direct Deposit for Employees
- 2.6 Payroll Taxes with Enhanced Payroll
- 3 Frequently Asked Question
Requirements To Enable Enhanced Payroll In QuickBooks
To use enhanced payroll with QuickBooks Desktop 2021, you need:
- An active internet connection
- An active subscription of enhanced payroll
- Employer Identification Number
Every company that pays employees needs an Employer Identification Number, which must be included in all the federal tax forms and returns. This number is only meant for administration of taxes. You can apply for EIN if you have a valid Taxpayer Identification Number (TIN).
Paying Employees with Enhanced Payroll QB
QuickBooks Enhanced Payroll can be used to pay both hourly and salaried employees. You can pay the following types of compensation using QuickBooks:
You can pay your employees as well as your contractors through enhanced payroll. Further, enhanced payroll gives you the ability to direct deposit compensation in contractors’ bank accounts and to e-file 1099s with the information already recorded in QuickBooks.
Find out more details QuickBooks Setup Payroll first time, which gives all the answers of question you have in mind before start doing payroll in QB.
How To Pay Employees Using QuickBooks Enhanced Payroll?
First of all, you need to enable direct deposit in QuickBooks. Also, a Payroll bank account, based in the US and ACH transaction enabled, needs to be set up in QuickBooks. After this, you must enter employees’ information.
Note: There is an additional charge for using direct deposit in QuickBooks. This fee depends on your payroll subscription. However, users with a subscription of enhanced payroll don’t need to pay any additional fee for deposit paycheck into the accounts of W-2 employees. But, a sum is charged for using direct deposit for paying contractors.
Information Required To Enter IN QB Enhanced Payroll Subscription
Get the Required Information
Ensure that you have the following information on hand before you begin this process:
- Business Name and Address
- Employee Identification Number
- Social Security Number, Home Address, and Birth Date of the Principal Officer
- Bank Routing Number and account numbers or online banking credentials
All this information will need to be entered by you in order to activate direct deposit in QuickBooks. Further, you’ll also need bank credentials in order to verify your bank account. During the verification process, Intuit will debit $1 from your bank account in order to verify the existence of the account.
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Connect Bank Account with QuickBooks
After connecting your bank account with QuickBooks, you’ll have the ability to make transactions online. Thus, you’ll have activated direct deposit for your company. However, in some instances, QuickBooks will want you to verify your bank account before you can begin using direct deposit to deposit paychecks directly into your employees’ bank accounts. We’ve provided the steps for the same below. Also, QuickBooks Nacha File play vital role to import export transaction QB to bank vice versa.
To connect your bank account with QuickBooks, follow the steps provided below:
- Log into QuickBooks with an Admin Account.
- From the Employees menu, select My Payroll Service.
- Select Activate Direct Deposit.
- Click on Get Started. Only admin account users can view this option.
- From the Business tab, select Start, fill in the required information, and click on Next.
- Fill in the information related to the principal officer. Hit Next.
- Click on Add new bank account.
- Enter Bank Information. Create and confirm the PIN. You’ll have to authorize the direct deposit using this PIN. Hit Submit.
- Hit Next, and Select Accept and Submit.
You’ve initiated the process to connect your bank account. After this, users will get one of the following messages:
- Your Bank Account is Connected: Now you can pay your employees using direct deposit.
- Thank You for signing up for QuickBooks Direct Deposit: You need to activate direct deposit from your bank account.
If you got the first message, then you’re ready to use direct deposit, but however, if you got the second message, then you’ll have to verify your bank account.
Verification of Bank Account
To verify your bank account and enable direct deposit in QuickBooks, follow the steps provided below:
- Log into your Bank Account and view recent transactions. If there’s a recent debit of $1 from Intuit, then you’re ready to activate direct deposit in QuickBooks.
- Launch QuickBooks and sign into an admin account.
- From the Employees menu, select My Payroll Service.
- Click on Activate Direct Deposit.
- Sign into your Intuit Account, and click on Verify.
- Enter the Payroll PIN, and click in Submit. Hit Ok.
Complete guide and step by step details QuickBooks Payroll Direct Deposit Setup if want to pay employee via direct deposit in the bank account.
You’re now ready to use enhanced payroll to deposit paychecks directly into the bank accounts of your employees. You can also set up direct deposit and pay your contractors and freelancers. The recorded data can then be used to file the 1099 tax forms.
Enable Direct Deposit for Employees
Once you’ve set up direct deposit in QuickBooks, you need to set up direct deposit for your employees. For this, you’ll need to get direct deposit authorization forms filled in by your employees. These forms are meant to get authorization from employees to enable direct deposit. Further, get a voided check from the employees to verify their bank account.
- From the Employees menu, select Employee Center.
- Click on the Employee’s name for whom you want to activate direct deposit.
- Click on the Payroll info tab, and select Direct Deposit.
- The direct deposit window will appear. In this window, click on Use Direct Deposit for [name of the employee.]
- Select the number of accounts in which you want to deposit the paycheck.
- Enter the bank information for the employee. This information will include:
- Bank name
- Account Number
- Account Type
- Routing Number.
- If you selected to deposit the amount in two separate bank accounts, then enter the amount that you want to deposit in the first account. Rest of the amount will automatically be deposited into the second bank account.
- Click on Ok and enter the payroll PIN to confirm the activation of direct deposit.
Note : User needs to check QuickBooks Payroll 2021 Update on regular basis and need to download and install whenever available.
After setting the whole thing up, you can enter the wages and number of hours for each employee. QuickBooks will automatically calculate the payroll amount, and with your authorization, deposit the amount in the bank account of your employees. The employees can then access their pay stubs through QuickBooks Workforce or their entered email address. Connect to QuickBooks Support Phone Number if need any help .
Payroll Taxes with Enhanced Payroll
With Enhanced payroll, you can file the following federal taxes:
- 940/Schedule A Get details QuickBooks 940 Setup
- 941/Schedule B – All about QuickBooks 941 Tax Efile
- 1099-NIC Check details Setup 1099 In QuickBooks
Further, many state tax forms can also be filled or even filed through enhanced payroll. Enhanced payroll automatically reminds you of any due tax payment. Further, Intuit always provides updates with the latest tax tables and forms, so that you can calculate payroll taxes accurately and file them on time.
MyOnePro Also brings complete details user can also E-file Payroll Tax In QuickBooks Don’t Have Payroll Subscription or service enable.
Apart from facilitating payroll payment and filing taxes, enhanced payroll also enables you to securely record personally identifiable information of your employees. With advanced encryption techniques used by leading banks, you can be assured that your financial data is always safe.
Frequently Asked Question
Can I change my subscription plan mid-year?
Yes. Users have the option to change their subscription plan mid-year directly through QuickBooks or from their Intuit account. In My Payroll Service, you can select Change Payroll Service Option and subscribe to Enhanced Payroll. Know also all about QuickBooks Year End Checklist .
Is my payroll data safe when I use QuickBooks 2021 Enhanced Payroll?
Yes. Intuit ensures that all your payroll data is encrypted with the same advanced algorithm on which leading banks rely. You can freely save the personally identifiable information of your employees and file taxes online. All the information is securely saved by Intuit.