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What are the steps to take to add payroll processing to my bookkeeping and tax business?

What are the steps to take to add payroll processing to my bookkeeping and tax business?  Is being a CPP required?

 

 

(Title edited by moderator for clarity)

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Best answer 01-02-2018

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Level 4

What are the steps to take to add payroll processing to my bookkeeping and tax business?

You are not required to be a CPP to offer payroll to your clients. The certification is nice to have to convince prospective clients that you know what you are doing.

 

Good habits of doing payroll are:

 

1. Get E&O insurance

 

2. Obtain engagement letters from your clients

 

3. Make sure you do all the work on time (paying the taxes, filing the reports)

 

4. Be responsible for the penalties if such are assessed and they were your fault (you paid taxes late for example.) Research and know all the payroll rules, both federal and state including minimum wages, PTO, tips, etc. When you offer payroll, you become an HR specialist in the client's eyes and you need to be able to answer their questions or know where to look up the info.

 

5. Underpromise and over deliver. For example, I tell the clients I will have their payroll done within 2 hours even if I can get it done in 15 minutes. This allows for management of expectations as if you answer really quickly to payroll requests, you set expectations that you will always answer that quick when there will be time when you can't answer right away. Also, if you answer too quickly, they will feel the price of the service is too high.

 

6. Don't rely on the clients to pay the taxes or mail the forms.  Most clients will be good but a few will ignore your emails and payments/filings won't be made timely.

 

7. Don't sign a payroll tax report unless it's been paid in full. If there is a tax due, the IRS will go after the client, its owners personally, and the person that signed the return even if that person is not an owner.

 

Lastly, Using QBO payroll is more difficult than using QB payroll desktop and much less flexible. Make sure you know both systems very well or call Intuit for help. The QBproadvisor hotline is great and the agents are very knowledgable.

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6 Comments
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Anonymous
Not applicable

What are the steps to take to add payroll processing to my bookkeeping and tax business?

Hello Dana (@DanaLynnEA)

 

A warm welcome to the QuickBooks Community! We have quite a few members who know a ton about Payroll. @vivianethompson@ItsAccrualWorld, can you offer any advice to our new member?

 

You can also use this article, Setting Up Payroll for the First Time, from the QuickBooks Resource Center to get started. Hope this helps!

Highlighted
Level 4

What are the steps to take to add payroll processing to my bookkeeping and tax business?

What is a CPP?

Highlighted
Anonymous
Not applicable

What are the steps to take to add payroll processing to my bookkeeping and tax business?

@DanaLynnEA, can you clarify what you mean by CPP? Do you mean CPA?

Highlighted
Level 2

What are the steps to take to add payroll processing to my bookkeeping and tax business?

CPP is a Certified Payroll Specialist.

Highlighted
Level 4

What are the steps to take to add payroll processing to my bookkeeping and tax business?

You are not required to be a CPP to offer payroll to your clients. The certification is nice to have to convince prospective clients that you know what you are doing.

 

Good habits of doing payroll are:

 

1. Get E&O insurance

 

2. Obtain engagement letters from your clients

 

3. Make sure you do all the work on time (paying the taxes, filing the reports)

 

4. Be responsible for the penalties if such are assessed and they were your fault (you paid taxes late for example.) Research and know all the payroll rules, both federal and state including minimum wages, PTO, tips, etc. When you offer payroll, you become an HR specialist in the client's eyes and you need to be able to answer their questions or know where to look up the info.

 

5. Underpromise and over deliver. For example, I tell the clients I will have their payroll done within 2 hours even if I can get it done in 15 minutes. This allows for management of expectations as if you answer really quickly to payroll requests, you set expectations that you will always answer that quick when there will be time when you can't answer right away. Also, if you answer too quickly, they will feel the price of the service is too high.

 

6. Don't rely on the clients to pay the taxes or mail the forms.  Most clients will be good but a few will ignore your emails and payments/filings won't be made timely.

 

7. Don't sign a payroll tax report unless it's been paid in full. If there is a tax due, the IRS will go after the client, its owners personally, and the person that signed the return even if that person is not an owner.

 

Lastly, Using QBO payroll is more difficult than using QB payroll desktop and much less flexible. Make sure you know both systems very well or call Intuit for help. The QBproadvisor hotline is great and the agents are very knowledgable.

View solution in original post

Highlighted
Anonymous
Not applicable

What are the steps to take to add payroll processing to my bookkeeping and tax business?

@vivianethompson,

 

This is a great set of guidelines for running Payroll. Would you be interested in turning it into a piece of content so users can find and use it more easily?

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