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jbeattie6238
Level 2

We only have 2 employees, but pay a payroll service fees t run payroll. Is it possible to perform the payroll function ourselves without all the fees easily?

 
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Best answer December 10, 2020

Best Answers
MarsStephanieL
QuickBooks Team

We only have 2 employees, but pay a payroll service fees t run payroll. Is it possible to perform the payroll function ourselves without all the fees easily?

Hi there, @jbeattie6238.

 

Allow me to share some details on how payroll works when you're not subscribed to a payroll service.

 

Using the functions when you're using payroll will not be available if you're going to cancel the service. However, you can still run payroll by creating specific accounts and using the check transaction to pay your employees. Or you can also create a Journal entry to process it. I'd recommend doing this with your accountant to ensure your books are accurate.

 

These are the accounts needed:

  • Payroll Liabilities: Federal Taxes (941/944)
  • Payroll Liabilities: Federal Unemployment (940)
  • Payroll Liabilities: [State] SUI/ETT
  • Payroll Liabilities: [State] PIT/SDI

This is how it looks like when creating an account:

 

 

Then, proceed to the steps in this article after you've created the accounts needed: Manually enter payroll paychecks in QuickBooks Online.

 

Note: If you cancel your payroll service you'll be paying and filing taxes manually to your state agency or IRS.

 

I've added this article to help you with the year-end tasks with QuickBooks: QuickBooks Online year-end guide and checklist. This contains sub-articles that will guide you to easily perform your tax payments and filings.

 

I'll be here if you have other questions regarding QuickBooks. I'd be happy to lend a helping hand. Take care.

View solution in original post

jbeattie6238
Level 2

We only have 2 employees, but pay a payroll service fees t run payroll. Is it possible to perform the payroll function ourselves without all the fees easily?

Thank you!  I suspected the payroll fee costs would outweigh the efforts that I would have to place to do payroll manually.  We were just looking for ways to reduce our costs.  Currently we pay PayChex $60 every time we run payroll for 2 employees, but we only run payroll once a month.  Appreciate the response and assistance.  John

View solution in original post

2 Comments
MarsStephanieL
QuickBooks Team

We only have 2 employees, but pay a payroll service fees t run payroll. Is it possible to perform the payroll function ourselves without all the fees easily?

Hi there, @jbeattie6238.

 

Allow me to share some details on how payroll works when you're not subscribed to a payroll service.

 

Using the functions when you're using payroll will not be available if you're going to cancel the service. However, you can still run payroll by creating specific accounts and using the check transaction to pay your employees. Or you can also create a Journal entry to process it. I'd recommend doing this with your accountant to ensure your books are accurate.

 

These are the accounts needed:

  • Payroll Liabilities: Federal Taxes (941/944)
  • Payroll Liabilities: Federal Unemployment (940)
  • Payroll Liabilities: [State] SUI/ETT
  • Payroll Liabilities: [State] PIT/SDI

This is how it looks like when creating an account:

 

 

Then, proceed to the steps in this article after you've created the accounts needed: Manually enter payroll paychecks in QuickBooks Online.

 

Note: If you cancel your payroll service you'll be paying and filing taxes manually to your state agency or IRS.

 

I've added this article to help you with the year-end tasks with QuickBooks: QuickBooks Online year-end guide and checklist. This contains sub-articles that will guide you to easily perform your tax payments and filings.

 

I'll be here if you have other questions regarding QuickBooks. I'd be happy to lend a helping hand. Take care.

View solution in original post

jbeattie6238
Level 2

We only have 2 employees, but pay a payroll service fees t run payroll. Is it possible to perform the payroll function ourselves without all the fees easily?

Thank you!  I suspected the payroll fee costs would outweigh the efforts that I would have to place to do payroll manually.  We were just looking for ways to reduce our costs.  Currently we pay PayChex $60 every time we run payroll for 2 employees, but we only run payroll once a month.  Appreciate the response and assistance.  John

View solution in original post

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