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.
- Turn on QuickBooks Online Standard Payroll.
- Next, follow this guide to set everything up.
- Once everything is set up, time to add employees. This article provides step by step instructions.
- 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, allowing you to send your liabilities to HMRC via the Government Gateway.
Running payroll/paying your employee:
- If you need to make changes to your employee's record or pay, do so before running your payroll.
- When you’re ready, add employees.
- Check your employment payment record report to find out the liabilities you owe.
- When you are ready, submit FPS to HMRC. Note: QuickBooks does not pay employees, employers are expected to pay employees outside of the product.
- Email or print payslips for your employees.
Once all these steps have been completed, you’re ready for the next pay period.
Making payments to employees
Actual payments are not made through QuickBooks Standard Payroll. It's your responsibility as an employer to pay your employees with your usual payment method outside QuickBooks. 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 will want to match the employee payments to the automatically created journals. If your bank is not connected, you do not need to record employees’ payments.