Payroll Taxes and Liabilities in QuickBooks

QuickBooks Payroll helps you to manage your small and mid-size business account. Payroll Taxes and liabilities are part of QuickBooks that helps you to calculate and pay your company tax. Payroll taxes are taxes that employees and employers must pay based on salary and suggestions earned to employees and salary paid to employees. The employee pays these taxes through payroll deductions, and the employer pays the remainder directly to the IRS.you would like more info on the payroll services available, connect with our QuickBooks Technical Support Team. 

Benefits of Payroll taxes

Some of the benefits of payroll taxes paid by the employer are:

  • Employer part of insurance – Health, dental, vision, life, disability
  • Employer-paid holidays, holidays and sick days
  • Employer’s contribution towards 401 (k), savings plans and profit-sharing plans
  • Employer’s contribution to pension schemes
  • Retirement after health insurance

Guidelines for Setting Adjusted Payroll Responsibilities in QuickBooks

  • Go to the Payroll Center section of your accounting software and select Employee.
  • After opening the employee section, select the Schedule Payment option.
  • Locate and select or modify the tax liability you want to set for payment.
  • Use the Edit option and make all necessary changes to the available information.
  • Verify or enter the correct payment information.
  • Then from the Finish section, click the Finish button as soon as the editing/ scheduling is complete.

How to Setup and Pay Payroll Taxes and Liabilities in QuickBooks

Step 1:- Navigate to the Payroll Taxes.

From the left menu bar, you will see taxes click on Taxes.

Step 2:- Select the Payroll Tax.

Make sure that you have Payroll Tax selected because there have two options for select but you select Payroll Tax.

Step 3:- Taxes and setup and compliance.

You will need to have a birth date and hire date for each employee handy. 

Step 4:- Enter Company Detail.

Below is a brief description of the information you need to enter your company.

Business name

Enter the legal name of your business that you use all tax return filings.

Business address

The address you entered for your business during the payroll setup will automatically come up here: If you use a different address, instead of putting a checkmark, you’ll see fields where you can enter the correct address information Huh.

The date you plan to run the first payroll

Provide the date that you plan to run your first payroll. This information is the key to tracking payroll tax payments. Your date option will be based on the current month and year that you are in.

The date you hired your first employee

If you have hired your first employee within the last six months, select Yes otherwise choose No.

Step 5:- Enter Federal Tax Details

Below is an along with a brief explanation of the information that is required for federal taxes

FEIN

Enter your federal tax id in this field. If you don’t have it, you can select No.

Tax Form

Select the required payroll tax form to file with the IRS.

Federal Tax Payments

From the dropdown, choose how often you are required to pay federal payroll taxes. The options here are semi-weekly, monthly or quarterly.

Non-profit status

If you are a 501(c)(3) non-profit business that does not pay FUTA, select Yes otherwise select No

Step 6:- Enter state Details

Below is an along with a brief explanation of the information that is required for federal taxes

  • State Employer-Account Number
  • State Unemployment Insurance (SUI) Rate
  • Employment Training Tax
  • Deposit Schedule

Step 7:-Set Up E-pay and E-file

  • E-pay and E-file
  • Manually with paper coupons

Step 8:- Pay Taxes

Once you have completed all of the setup info, you can navigate back to the Payroll Tax Center clicking on the Gear icon and select the Payroll Settings. Click the Pay Tax button and follow the on-screen prompts to make your tax payment.

Edit and View

Now that you know how to set up payroll taxes and liabilities, there may be times when you need to make changes to your tax setup or you just want to see the tax forms you have previously filed. Click the gear icon from the home page and select Payroll Tax and liabilities Settings as we did in the previous step.

The payroll tax center will display the center as given below. Let’s discuss in detail what information you can find here.

  1. Edit your e-file and e-pay setup
  2. Edit your tax setup
  3. View your Tax liability report
  4. View tax payments you have made
  5. Enter prior tax history
  6. Quarterly Forms
  7. Annual Forms
  8. Employee Setup
  9. Employer Setup
Payment of tax liabilities if you use a full-meal-contract payroll service

Quick Explanation: If you use a full-meal-contract payroll service – such as an ADP or paycheck service – most (probably all) of your federal tax liabilities and your state tax liability will be paid for as part of the service. In other words, the payroll service withdraws money from your bank account and uses this money to make payments to the appropriate federal or state government agency.

Payment of tax liabilities if you do not use a full-meal-contract payroll service

If you do not use the full-meal-contract payroll service, you must pay the payroll obligations yourself. To do this, choose Employee → Payroll Tax and Responsibilities → Pay Determination Responsibilities. When displaying the QuickBooks Employee Center: Payroll Center window (and its list of fixed payroll and related obligations), select the payroll obligation you want to pay, and then click the View / Payment button.

Payment of other Non-tax obligations

If you pay Non-tax liability for employee health insurance or retirement savings – no matter if you use the L cheap payroll service or the full-meal-contract payroll service – you will also choose the employee → Payroll taxes and liabilities Create custom liability payments. (When you select that order, you must indicate what obligations you will pay.) QuickBooks writes the check and puts it in your register. QuickBooks gives you the correct date for the check and schedules to pop up in your reminder window at the right time. Also, if you are registered with EFTPS online – and you should be – the check is created the same way and the check number can be converted to EFTPS and not actually printed.

Conclusion 

In this blog, I told you about payroll taxes in QuickBooks. I hope my information is useful for QuickBooks users. If you want more information about QuickBooks and our QuickBooks support service, contact our QuickBooks Tech Support team.

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