I paid a few thousand dollars to my employee from our business account on business checks before we got QB Payroll. How will it hurt us if I don't add all of these payments to our QB account? Will it hurt us when filing our taxes? Will we be losing money? Not sure how it effects us if I don't add it to QB.
I can help share some details about how to handle previous payrolls and get you started.
One of our goals is to make sure you'll have a worry-free tax season. Therefore, to stay compliant with the IRS and State agencies, you need to record the paychecks you've issued outside and within QuickBooks.
This is to avoid issues upon filing your tax forms and reporting the wages, tips and other compensation paid to the employees come tax time. For further reference, I've added an IRS article link below: