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Adding an employee in QuickBooks Online Advanced Payroll

SOLVEDby QuickBooksQuickBooks Online Payroll9Updated August 23, 2021

Once you have set up QuickBooks Online Advanced Payroll, the first step is to add an employee. You can do this by using the Employee Wizard, or the Import Employees option.

Setting up by using Employee Wizard

Setting up a new employee using the Employee Wizard is a simple 5-step process.

Get started by entering the personal details for the employee.

When entering an address, auto-complete suggestions may be presented. To pre-fill an address, click on a suggestion. If the suggestions are not adequate, you can enter the address manually.
Note: If the address doesn't appear in QuickBooks, check and confirm that the address appears in the Royal Mail address finder page. If the address is present in the Royal Mail address finder page but not within QuickBooks, then contact support for resolution.

If the postal address for the employee is different to their residential address, uncheck Postal Address is the same as Residential Address and then enter the postal address.

Notifications controls if and how the employee will be notified when new payslips are available, and when they are rostered on to new shifts.

Self-service controls whether the employee will be able to log into the self-service portal. From the portal they can view payslips, manage their personal details and apply for leave.

If Email notifications or Employee Self Service are selected, an email address must be provided for the employee.

The table below details the meaning for each field.

Pay Rate TemplateHere you need to fill in all of the relevant fields. Choose from the drop down menu of you are going to use a pay rate template or if you are going to manually set the rates.
Start DateThe date the employee starts.
GenderSelect male or female.
Primary LocationSelect the primary location.
Pay ScheduleSelect the pay schedule.
Pay RateEnter the amount in pounds and select if it is to be paid per annum/day/hour and how many hours they normally work per week.
Employee is paid regularlyWhen reporting employees via RTI, you need to report how many hours they regularly work. This is done by using the following statuses:
  • A if less than 16 hours
  • B if 16 hours to 23.99 hours
  • C if 24 hours to 29.99 hours
  • D if 30 hours or more
  • E if you don't pay your employee regularly

Selecting this option will submit "E" on the employee FPS regardless of the number of hours they have worked

Only select if the employee isn't been paid regularly(for example, they are a casual employee or on long term sick leave) or if you are not going to pay them for 3 months or more.

Primary Pay CategorySelect the pay category you will pay your employee with.
Leave Allowance TemplateSelect if you are using a leave allowance template or select no leave allowance if you are not using one.
NMW/NLW EligibilitySelect if the employee is eligible for national minimum wage or exempt from national minimum wage. The pay run will check that the national minimum wage requirement has been met.
TimesheetsYou can select from the drop down menu if you are going to use timesheets.


Enter the bank account and super details for the employee. Employees may either be paid electronically into a bank account (using a BACS file), manually into a bank account, manually via cash/cheque or electronically.

Additional bank accounts may be added once the employee setup is complete.

This section is for entering HMRC information. For example, tax and National Insurance details for the employee.

Payroll IDEnter the Payroll Id for the employee.
Employee StatementEnter the employee statement here. If the employee has previously been reported (ie you are just changing systems and you are transferring their details to this system) you need to tick the box to say that this employee has previously been reported.
Tax CodeEnter the tax code here and if you are using a week one/month one code you need to select the tick box otherwise the code will default to cumulative.  You should not include the X at the end of a tax code. For example, K325X should be entered as K325.  The x tells you to use the calculation method w1/m1.

Note: The QuickBooks tax code notification feature automatically updates employee's tax codes without the need to manually the new tax code.

 Has Student LoanTick the box if the employee has a student loan.
National Insurance NumberEnter the National Insurance number for the employee. If the National Insurance number for the employee is not available (or the employee is exempt from supplying a National Insurance number), click 'NIN unknown' box.
National Insurance CategoryThe National Insurance category can be selected from the drop down menu. If the employee is a company director please tick the box.
Previous Employer (P45)Enter the Employer PAYE reference, leaving date, total pay to date and the total tax to date. Here you will see an alert if the total tax to date stated does not match the total tax calculated. Click 'Check' to compare the calculations.


Here you need to confirm how you want to assess this employee for auto-enrolment.

At this stage, the basic payroll setup for the employee is complete. The employee is now able to be included in pay runs.

Click on the blue Details button if additional configuration of the employee is required, for example:

  • Configuring additional pay rates
  • Adding additional locations
  • Setting up work types
  • Adding additional bank accounts
  • Setting up deductions or adjustments

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