 QuickBooks Online 2022 Payroll Setup. Get ready because it's go time with QuickBooks Online 2022. Here we are in our Get Great Guitars practice file that we set up with our 30-day free trial. Holding control, scrolling up just a bit to get to that 1-2-5 percent. We're currently in the homepage or the Get Things Done page. And the business view as opposed to the accounting view. If you wanted to switch to the accounting view, it's something you can do by going to the cog dropdown up top and going to switch to the accounting view. We might be toggling back and forth here to see those two views and or switching back and forth to the sample company just to take a look at where the different navigation items are. We're now looking at the setting up of the payroll. Remember that the payroll is going to be an add on type of feature. So if you don't have the payroll, you want to think about how you're going to set up the payroll. We discussed this in the past, so I won't go into it in a lot of detail. But remember, it's one of those things that I would categorize as measure twice cut once as opposed to one of those things that it's good to tinker with until you fix it, until you get it right. Because if the payroll is not set up correctly, it can be costly and time-consuming to kind of fix the payroll hence the term measure first and then cut once with regards to the payroll. So you might want to talk to a CPA firm to see if QuickBooks payroll is the way that you want to go or if you want to set up payroll in some other thing like an ADP or a Payjects or some third party payroll company and then go into the process of setting it up within the QuickBooks here. We have the different payroll options. So they have different tiers of payroll that you can be purchasing. We set up the free 30-day trial with the payroll. Remember, of course, if you set up the free 30-day trial as you set up your payroll, then you're basically locking yourself in to purchasing the payroll after that point in time because you're going to already have some of your payroll processed within there. So we're going to be practicing with it in terms of our practice problem. But do your research before you actually apply the payroll to your company file, but it's great that we get access to it with our 30-day free trial so that we can take a look at the payroll. Now remember, we're in the business view. So the payroll is going to be over here on the left-hand side. And if you were in the accounting view, you would have a payroll tab over here as well. Now the general ledger, you'll recall, there's quite a big difference in the editing of the general ledger. I'm assuming that the payroll will be basically the same on the setup process, but I could be wrong, so I would actually feel safer doing this in the accounting view. But I'm going to do it in the business view because I want to practice seeing it in the business view set up here. But I would actually, in practice, if you're doing this in your own practice, go to the accounting view because you might have more functionality there. I think their need to simplify things in the business view could actually make things a little bit more difficult. But I think it's designed to actually be easier, so I want to take a look at it here. And I think mainly the setup process will payroll should be the same, but we'll take a look at it. We're going to go up top to the overview up top in the payroll section. So it's welcome to QuickBooks Payroll. Let's get acquainted. Just a few questions and you'll be on your way. So I'm going to go ahead and say get started. Now remember, I'm looking at payroll with regards to the United States version of payroll with regards to the payroll taxes and withholdings and whatnot and human resources type of laws that will go along with it. So if you're located, if there was no taxes on payroll, then payroll would be just about as easy as any other kind of transaction. It would just basically pay someone. It would be an expense. And then the checking account would go down. The reason it's so complex is because of the laws and regulations withholding taxes and so on. And those are going to be subject to region. So accounting in general is something that's universal, meaning the uplaws will basically apply. It's a double entry accounting system. Taxes, however, there's no new taxes under the sun. Every tax system has basically every kind of tax has been thought of generally. It's just which kind of taxes being applied by which government agency that you happen to be working under. So in any case, we're in the United States tax system that we're looking into here. So have you paid employees in 2022? You would like to have all of your payroll for whatever year you are working in one payroll system. If it's not, then it's going to be a little bit more difficult. In other words, it's harder to transfer payrolls like in the middle of the year because there's caps on things like the federal unemployment tax as well as the social security. So you would like to, if you're going to switch payroll systems, do it in January. That would be the easiest thing. If not, you can work around it and you have to deal with the prior data. But that would be the easiest thing to do. So have you paid employees in 2022? I'm going to say no. We're thrilled you're here since it looks like this is your first time paying employees in 2022. We'll help you set up everyone upright. So we're going to do great. That's good. When is your next payday? And I'm going to say we're going to set up our payroll monthly. So I'm going to imagine that we pay at the end of the month. Now the payroll system is going to be somewhat up to the employee error now. They can pay people weekly. They can pay people semi-monthly. There's the standard payrolls. You can pay people semi-monthly or bi-weekly or monthly. Generally, we're going to do it monthly just for the purposes of the practice problem. And then we're going to say next. And it says what's your primary work location? This is the address where most of your employees will work. We'll use this as your primary work location. So it needs the primary work location to get the taxes correct if there's any state and local taxes. So I'm just going to make up an address here. I'm going to just say our Beverly Hills theme. 2012 or 1024 Summit Drive Drive. And then we're going to say Beverly Hills, California 90210. That one's selling for about 18 million right now if you wanted to look into it. We're going to say next. So what's your contact? Who's your payroll contact? So you can have someone that's going to be the payroll contact for the business if it's a sole proprietor, straightforward. If it's not a sole proprietor, then you got to think about if it's a corporation who's going to be the payroll contact and so on. So we'll say next on that one. Have you run payroll? How have you run payroll? So run by ADP. These are some payroll companies that you might have had payroll in the past. I'm going to say I've never run payroll before. And so we'll say next on this one. Add your first employees. So now we're just going to add our employees. As we do so, you're going to want the information necessary to add them, typically coming from their W-4. So typically they're going to be filling out the W-4 form. That's going to give the vital information. Remember from a federal income statement standpoint, we're going to have to take their withholdings out of their paycheck based on what they tell us. So we're required to take the withholdings out because we're required by the federal law. But we have to do so in accordance with what they give us, which would typically be from the W-4 form. And that's what we're going to use to enter our data into here. So we're going to say, all right, let's add an employee. I'm just going to add two employees. So I'm going to say the first one is going to be add. I'm going to call them Adam Hamilton. No middle name. Hamilton. I think that's how you spelled him a ton. So I'm going to go with that. And then email address. I'm not going to have an email address. We'll email an invite to this employee to view their pay stubs and W-2 with QuickBooks workforce. Learn about the workforce. Ask if this employee is to enter their personal tax W-2 and banking info into the QuickBooks workforce. Invite this employee to track or record their hours. Okay, so let's enter the email address and let's go through that process. So go ahead and email this and ask the employee to enter their personal tax 2020 W-4 information. What are Adam's employment details? Add employee hire date and where they work. So I'm just going to put them at the beginning of the year here. So I'm going to put the hire date as of January 1st work location. We only have the one work location. You can add another one here if there are multiple locations. How often do you pay Adam? Enter a few details and we'll work out your company's payroll calendar. What is a pay schedule? So we're going to create the pay schedule. And once again, the questions are typically going to be do you pay people every week? Do you pay people every other week that would be bi-weekly? Or do you pay them twice a month or do you pay them every month? Now these are straightforward except for these two can look a little bit confusing. They can seem like the same thing because you might say, well, if I pay them every other week, is that not the same thing as paying them twice a month? It's not quite the same thing because twice a week, if you think about it, has different amount of pay periods in the year. So in other words, I would think about if we paid someone every other week or bi-weekly, then it would be I could say 52 weeks in a year about divided by, if I say divided by two would give us 26 time periods. However, if I was to say that we pay people twice a month, I'd say, well, 12 months in a year times two would be 24. So you got 24 versus 26 pay periods. So these two are not quite the same thing. You got to keep that in mind. But we're going to be paying people every month here to keep it kind of easy and have two payroll processes that we will create in our practice problem as we do data entry for two months. So the next pay day, we're going to say, next pay day every month is going to be, I'm going to say the 31st, the next pay day end of the next pay period. I'm also going to say is the 31st. Now, these two things don't have to be the same day because you might separate the end of the pay period and when you process the check. But if you're doing direct deposit, it might more likely be the same day, but they don't have to be on the same day per se. And so pay schedule name. So we're going to say every month on the name will keep that there. Use this pay schedule for employees you add after this for most companies. You're going to have the same pay schedule for, you know, all your employees. You're not going to pay most of the time monthly for one employee and biweekly for another. You could, but that will be more confusing. You'll typically be on the standardized schedule. They're making our schedule for us up here end of the month each time. So that looks good. So I'm going to go ahead and save that. Save it. And so here we go. What are Adams employment details? So higher date here. How often do we pay monthly? How much do you pay Adam? So now we're going to have Adam hourly or we're going to have them salary. I'm going to say salary for Adam. And we're going to say that Adam earns what I say 60,000 per year. We're going to say 60,000 per year, which if I pull out the trustee calculator, trustee calculator and just take a look at that, that would be 60,000 divided by 12 for monthly amount of 5,000. I think we paid them, let's say it was, because I think we're paying 4583.33 times 12, more like 55,000. Let's say 55,000 a year. 55,000 per year. In Adam works, let's say eight hours per day and five days a week. So we'll keep that. That's the standard work week. Does Adam have any deductions? Examples, retirement health care deductions may include health care, retirement plans, garnishments and loan payments can be added here too. So deductions, these might be, you could think of them more as like voluntary withholdings. The involuntary withholdings being the taxes that were required to take out social security, Medicare, federal income tax driven by the W-4 typically. And then whatever benefits we provide would be voluntary type withholdings, typically retirement health care and so on. We're not going to get into that here. We have a payroll course if you want to look into those items in more detail. What are Adam's withholdings? We'll invite this employee to fill out a W-2, a 2020 W-4 via workforce. So we're going to actually email this out so they can fill that out. Our free employee portal, if you want to use the 2019 W-2 instead, uncheck the self-setup in step one. What are Adam's personal details? We'll invite this employee to complete this part via workforce. Our free employee portal, if you want to enter yourself, uncheck the self-setup step in problem one. So we're going to go ahead and send that email. We'll check out that email process. That seems like a nice process to go through. So because that will put the process of entering that information directly on the employee, possibly reducing liability to us as the employer. So we'll take a look at that. So how do you want to pay Adam direct deposit or the paper check? So let's do the paper check. You would probably do the direct deposit most of the time, but for the practice problem, we want to see the paper check so we can process it within our system here. So I'm going to say, and we don't want to actually put the banking information in and so on, which would be the added step you would need for the direct deposit. So let's go ahead and say done on that one. So Adam, it's incomplete because he's still going to get that email that we're going to be opening up. We'll check that out possibly in a future presentation. Let's add another employee and do the same kind of thing here. So I'm going to say this one, let's say is Erica and Smith. Erica Smith email and this time let's uncheck this one here. And this is recommended letting your employee enter their personal information improves accuracy. But I'm going to go ahead and uncheck it so we can input it this time here based on the W4 we would imagine. And then we'll see that email process for one of them and see both methods here. What are Erica's employment details, a higher date? I'm going to say the same thing at the beginning of the year. It's the same location. How often do you pay Erica? We're going to say every month that will typically be the same for everyone else we hire. She's going to be, we're going to put her on as hourly so that we can test the two formats of pay and we'll say 20, let's say $20 an hour and the hour, we're going to say eight hours a day for, we're going to say five days a week, five days a week, eight hour days, five days a week for the standard 40 hour work. Okay, and then we're going to say add additional pay types. No, I'm going to keep it that that. Does Erica have any additional deduction? So again, I'm not going to get into the retirement healthcare and so on. We're going to get into fairly general payroll here. We do have another course that gets into some of that stuff in more detail. For Erica's withholdings, you can find this information on this employee's W-4. What is a W-4? You can get into that. So we're going to add that. This is a W-4. So we're just going to enter some general information for that. And so we're going to say Erica Smith address. We're going to give her Beverly Hills address too. So I'm going to say she's at the 2571 Wallingford Drive, Beverly Hills, California 90210. Then I'm going to put in a mock social security number and see if they allow me to run forward with that. We've got the federal withholdings. So you can find the information for this section on Erica's W-4. I'm going to say that she is filing widowed filing. I'm sorry, buried filing jointly or qualified widow, widower. And then select yes. If Erica has marked this box on their W-4, step two C. So step two C. You can see over here on the W-2. So I'm going to go ahead and say yes on that one. Claim dependence. This is from step three. So you'd have the information that they can go through for step three. I'm just going to keep it at zero here. Other adjustments. So other income and deductions and the extra withholdings. I'm going to keep those at zero here as well. Then we have the state information. Now, of course, we put the information for California in here. So it's going to try to calculate the California tax. I want to keep it kind of as generic as possible because the state information is going to be unique to the states. So it's going to be different from state to state. And so it's a little bit more specific. So I'd like to keep it as kind of a general withholding so we can get an idea of the deductions on the federal side. So I'm going to try to remove the state as much as possible. Therefore, on the tax exemptions, it says here, these are not common. Certain government criteria must be met to take these exemptions. Not sure you could contact. I want to just take a look at the social security and Medicare. So I'm going to try to say their exempt from the FUTA, the California SUI, and the California SDI. The FUTA is a federal tax, but it's a little bit confusing because it has a cap on it that starts in the first half. So the federal unemployment tax will change as it goes on from the first quarter to the last quarter. It will typically be quite different. So I just want to take a look at withholdings in a generic kind of method and look at just like the social security and Medicare related to it. So I'm also going to remove the California, if it lets me do that as well, to keep it a generic kind of federal problem that can kind of apply a general idea of how the withholdings work for payroll. So I'm going to save that, see if it lets me save that. So what are Erica's withholdings? What are Erica's personal details? So I'm going to say the date of birth is going to be January 15, 1991. What do you want to pay, Erica? In a rush, choose paper check for now and come back to change it later. So I'm going to choose the paper check because we don't want to enter the direct deposit information and so on in our practice problem. Each time you run payroll, we'll create a paper check that you can print. So great, I'm going to say done on that one. So now Erica is fully set up and then we issued this email to Adam to see Adam's information. Let's take a quick look at that. So here's what kind of the email looks like. If you were to get this email, let's get you ready to pay, get great guitars. So we're going to say, all right, get set up and it's going to open up our payroll. Now we're imagining we're doing this from Adam's side of things and so we have to sign Adam in here. Okay, so here's what it looks like. Let's set you up to get you paid, get great guitars, need some basic information. So we're going to say personal information, tax withholding and review and sign. So I'm going to say, okay, let's do this address. Adam's also in Beverly Hill. So that's the general look and feel of how that looks, but I'm going to go back, I'm going to jump back into my payroll within our QuickBooks system over here where it was incomplete. And I'm just going to manually put it into the system here like we did with Erica to finish the process. So I'm going to uncheck this checkbox and just complete as we did with Erica just for our mock problem purposes. How often do you pay? How much do you pay Adam? So we have that. Does Adam have any deductions? We did that. What are Adam's withholding? So I'm going to go into this and just enter the generic information for Adam. This is where I'll put Adam's address, which I'm going to say it's 1-1-0-9, Kaya Vista Drive. And I'm going to say it's in Beverly Hills, California 9-0-2-1-0. And then the Social Security. I'm going to make one up. Then on the withholdings, I'm going to say this one single this time. And I'll check this one off again. I'm not going to add any adjustments for the claims of deductions or other adjustments, which you would be getting from the W-4. Same kind of thing with the California. I'm going to try to make it as minimal as possible with regards to state obligations. And I'm going to remove the federal unemployment tax, too. So we're making it kind of a generic problem just on the federal side, focusing on what withholdings look like in general when we post them, looking at the Social Security and Medicare for the purposes of the practice problem. Let's go ahead and save that. And that's our general information. We're going to give them the date of birth, date of birth of... Let's say... Let's say 02 and then let's say 21 and 1998. Let's do it again. 02, 21, 1998. Like so. And so that 19... Let's say 1988. 1988. Okay. Then how much do you want to pay, Adam? Or how do you want to pay with the paper check? So that's it. Let's say done here. And then we've got our two employees. Set up. So I'm going to go ahead and say done on that. So we've got that system set up. So pay your team with paper checks or keep tracking tasks so we can help you calculate and pay. So we've got the set up tasks. You're ready to start. Your business info is complete. You're ready to pay your team. Add workers' comp policy. So workers' comp filling your tax info connects your bank and so on and so forth. So I think we're going to keep it at there for now. I do want to take a look at just what it would look like on the accounting view. So let's switch it over to the accounting view and look at the difference in the views. So now we're in the payroll item and now we have the headers up top. So we have a general same view. This is what I would generally expect between the two for the most part. The actual content is the same. But the look and feel and how to get around is different. So this one looks like we're in the same kind of activity here. So we will be going further with this and taking a look at it when we actually enter the payroll information into prior presentations when we work through the practice problem and then going through the payroll process here which is under the employee section when you're entering the payroll, which looks kind of like this as you actually process then the checks.