From creating a pay run to sending employee payslips, learn how to pay your employees in QuickBooks Online Standard Payroll with ease. Before you run a regular pay run, there are a few things you need to do.
If you're employing people for the first time
- Make sure you've registered with HMRC as an employer.
- HMRC will send you a PAYE reference and AO (Accounts Office) reference.
- You will get a Government Gateway password and username, which you will need as part of your company setup in QuickBooks.
- You will need to add your employees, so make sure you have all their personal information such as their full legal name, address, date of birth, National Insurance number and email address.
Once you have set up your company and employees in QuickBooks, you're now ready to run your first payroll. If this is your first time, here are some helpful articles to get your started:
When you’re all set up to run payroll, you’ll see Complete next to Payroll Status and RTI Status.
Create a pay run
First make sure you've finished setting up all the employees you want to pay. Note: If an employee is marked as incomplete on the employee list, you can go into their settings to check and edit their details so they will show up as complete.
- Go to the Employees or Payroll menu, then select Payroll.
Important: Make sure you've finished setting up all the employees you want to pay today. If an employee is missing some details and we need to create their payment or submit their RTI to HMRC, they won’t show up in the list when you run payroll.
- Select Run payroll.
- Make sure all of the employees you want to pay are listed.
Note: Select the slider next to a name if you want to remove the employee from this payroll.
- Double-check that the pay date. If you want to change it, select the date and then choose another. Remember, the pay date must be within the tax period.
- Enter number of hours worked/salary amount. Or enter the additional pay details (like additional pay lines and/or deductions) for each employee if needed. To do so, select Edit next to the employee's name.
- Select Save and review to see a summary of this payroll.
- If you want to review the payslip, select the amount shown in the Net Pay column (shown in blue text) to see a draft of the payslip. You can save the draft payslips to your device or print them out.
See any problems? Go back and make any changes before you submit the payroll.
- Select Confirm and submit to create the pay run in QuickBooks.
Once you complete these steps, QuickBooks automatically creates a journal entry for the pay run in the background for you. You can check the journal entry by using the search tool.
Journals that are automatically created reflect employee payments going out of your bank. If you have your bank feed connected to QuickBooks, you'll want to match the employee payments to the automatically created journals. If your bank isn't connect, you'll need to record the employees' payments.
Note: You won't be able to customise journal entries that QuickBooks automatically creates. However, you can select your Net pay account and journal entries can be manually edited once created.
Next you need to file the information with HMRC by submitting a FPS, which must be submitted before or on the pay date. If you have automatic filing switched on, you don't need to do anything else.
You then need to give your employees their payslips. A safe and secure way to do this is through the QuickBooks Workforce portal. Employees can sign in and view (and even download) their payslips from anywhere at their own convenience.
And the final step is paying HMRC any payroll liabilities that is owed for the given tax month. You can find the amount due in the Employee Payment Report, which can be found in under the Reports tab.