Add or edit an employee in QuickBooks Payroll

• Full name, gender, date of birth – enter the employee’s information.
• Employee ID – unique number required by HMRC for RTI submissions.
• Join date – select the date the employee started work.
• Seconded – tick if the employee will be in the UK for less than 183 days.
• Address – current residential address.

Select Continue to move to the next section.

QuickBooks uses this information to calculate taxes and contributions.

• Tax code – find this on the employee’s P45 or last payslip. HMRC provides a wizard to help employers work out an employee's tax code.
• Tax basis – select Cumulative (standard) or Week 1/Month 1 (pay-as-you-go).
• NI number – the employee’s National Insurance number from their P45 or payslip.
• NI letter – enter the correct letter. Provide proof if the employee is on a special NI letter (e.g., NI letter C for employees over SPA).
• Director NI since – for directors, enter the start date; NI is calculated annually, not per pay period.

Select Continue.

• Pay basis – choose Salary, Hourly, or Variable (manual input required for variable payments).
• Payment method – select how the employee receives pay.
• Pay rate – enter annual salary or hourly rate.
• Working days/hours – select days for salaried employees; enter hours per week for hourly employees (default 37.5 hours for salary).
• Pro rata method – automatically calculates pay for new starters and leavers.
• Irregular payments – for casual or seasonal workers.
• Offset SSP – adjust pay so employees receive normal salary instead of salary plus SSP.

Select Continue.

Enter YTD payroll details if the employee has already worked for you this tax year:

• This employment taxable pay
• This employment tax paid
• SMP, SAP, SPP, ShPP, SSP
• Student loan
• NIable pay and codes
• Employer and employee NI contributions

Tip: Use the employee’s P45, last payslip, P11D, or FPS submission for accurate figures.

Once completed, the employee is set up for payroll.