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Getting started with QuickBooks Online Standard Payroll

SOLVEDby QuickBooksQuickBooks Online Payroll20Updated 15 hours ago

This article details how to set up payroll in QuickBooks Online Standard Payroll. Preparing payroll for your company helps ensure everything is set up correctly and flows smoothly.

Before you get started

  • Paying employees - Actual payments to employees aren't done through QuickBooks Online Standard Payroll. It's your responsibility as an employer to pay your employees with your usual payment method outside QuickBooks Online. The same goes for HMRC payments. You can see the Payroll Details report (gross to net) to see the amounts to be paid to each employee, as well as HMRC.
  • Recording payments to HMRC in QuickBooks - The journals that are automatically created in QuickBooks are designed to reflect employee payments going out of your bank. If your bank feed is connected to QuickBooks, you'll want to match the employee payments to the automatically created journals. If your bank isn't connected, you don't need to record employees' payments.

1. Turn on Standard Payroll in QuickBooks Online

Before you can add employees or run payroll, you need to turn on Standard Payroll.

2. Set up Standard Payroll

Next, it's time to provide some information about your company. Follow this step-by-step guide to set up Standard Payroll.

3. Add employees

Now that everything is set up, you can start adding members of your team. You'll need to gather some basic information about them, like their first and last name, date of birth and contact information. Once you have all the info, you can add employees in Standard Payroll.

You can also invite any new employees to QuickBooks Workforce to add their personal information, saving you time on chasing paperwork and manual data entry.

If you need to make changes to your employee's information, like their record or pay details, do so before running payroll. Here's how you can edit employee profiles in Standard Payroll.

4. Turn on Real Time Information (RTI) reporting

HM Revenue and Customs (HMRC) requires employers to notify them of the liabilities they owe. Before you run your payroll, make sure you turn on RTI reporting to HMRC in QuickBooks. This will allow you to send your liabilities to HMRC via the Government Gateway.

5. Run payroll

Ready to start paying your employees? Great! We'll walk you through each step of the way, read How to create and run payroll.

6. Check your Employment Record (P32) report

An Employment Payment Record, also known as a P32 report, is a summary of the payments you need to make to HMRC for a given tax month. This includes all PAYE, student loan deductions, National Insurance contributions and more.

See Employment Payment Record in Standard Payroll to find out what you owe.

7. Make a FPS or EPS submission to HMRC

Every time you pay your employees, you must submit an FPS to HMRC. The FPS shows all payments made to employees, along with any deductions. An FPS is due to HMRC on or before your employees' pay date, so we recommend you submit it immediately after you run payroll.

An EPS is used to report values that can't be included on the FPS, claiming refunds or making declarations to HMRC. Here's how to submit an EPS in Standard Payroll.

8. Give employees their payslips

QuickBooks Online automatically creates a payslip for each employee every time you run payroll. You must give your employees their payslips on or before their pay date.

Here's how you can email and print employee payslips.

That's it! You're now ready for the next pay period.

For more help articles on managing employees and payroll, check out our Standard Payroll hub.

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