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Set up employee

Learn how to add an employee in QuickBooks Desktop Payroll.

After knowing the basic information of processing payroll, it's about time to add your employee. So you can pay and withhold taxes for them. Here's how.

Note: For Assisted Payroll, adding your employee is currently not available for Indiana and Wyoming.

Areas to complete to add an employee

When creating a new employee or editing their information, you need to enter information in any of these fields.

  • Personal - Enter the employee's name and Social Security number. The other fields are optional.
  • Address and contact - Enter the employee's home address, email address, and phone numbers.
  • Additional info - Enter their employee number and billing rate level (if applicable). You can also define your own fields here, if necessary.
  • Payroll info - Enter all payroll info associated with the employee, such as earning items, taxes, pay frequency, sick and vacation time, if applicable.
  • Employment info - Enter the employee's hire date, release date (if applicable), and employment date.
    • Leave of Absence: Enter the employee's leave details when applicable.
    • Termination: If an employee gets terminated, enter the termination dates and details.

    Note: If a release date is entered, you need to remove it before you can pay the employee.

  • Workers compensation (for QuickBooks Desktop Payroll Assisted and Enhanced Payroll only) - You can assign a workers compensation code with the employee or you can designate them as inactive by selecting the Employee is inactive box.

Add an employee

Entering your employee helps you organize their info if they're seasonal, tax-exempt or have a Visa. You can also manage their pay schedule so you won't forget it.

Note: Form 1120 is currently not available for use within QuickBooks. Visit the IRS website for form availability and instructions.

  1. Go to Employees, then select Employee Center.
  2. Select New Employee and enter their information in the needed areas.
    1. Select the Personal tab and complete the fields.
    2. Select Address and Contact, then complete the fields.
    3. Select Additional Info and enter any information of the employee.
      Note: Enter the needed information in Custom Fields or select Define Fields to add custom info.
    4. Select Payroll Info and add the info for compensation and benefits like:
    5. Select Employment Info and complete the fields.
  3. Select OK.

Set up employee default

You can set up your employee defaults in QuickBooks Desktop for their earnings, additions, deductions, contributions, and taxes. Each time a new employee is added, the employee defaults will automatically appear on the employee profile.

  1. Go to Edit, then select Preferences.
  2. Select Payroll and Employees, then Company Preferences.
  3. Select Employee Defaults, then enter the changes that you want.
  4. Select OK twice to save changes.

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