How To Set Up a New Employee Information in QuickBooks

Create a New Employee in QuickBooks

Last Updated on December 9, 2020 by

As you know managing the employee information in QuickBooks is very easy and efficient. Now if you want to set up a new employee in QuickBooks then it can be done in easy steps. It also helps you manage your business accounts, track inventory, and many more, so it best for use. So first read the guideline for creating a new employee.

Guidelines to Create New Employee

First, go to Employees and then Employee Center and go to Add Employee.

All information is divided into four sections:

  1. Personal information.
  2. Address & Contact information.
  3. Payroll information.
  4. And employment information also.

Personal information:

  • Enter Employee’s Legal Name.
  • Edit Print Setting.
  • Input Print Settings.
  • Input Employee’s Social Security Number.
  • Select Employee’s Gender.
  • Record Employee’s Date of Birth.
  • Select Employe’s Marital Status.
  • Mark Employee’s Citizenship.
  • Select the Employee’s Ethnicity.
  • Enter any disability information (If Applicable).
  • Add I-9 information.
  • And mark Employe’s Military Status also.
  • Enable Payroll (Optional).

Address & Contact Information:

  • Enter Employee’s Address.
  • Insert Employee’s Phone Number.
  • Add Employee’s Email.
  • Record Employee Details.
  • Enter Emergency Contacts.
  • Add Employee ID.
  • Create Custom Fields.

Payroll Information:

Employment information:

  • Add Hire Dates and time also.
  • Select Employment Type.
  • Choose Full-Time or Part-Time.
  • Mark Exempt or Not-Exempt.
  • Choose key employee status.
  • Write a job title.
  • Attach a supervisor (optional).
  • Select a department and domain also.
  • Write a description (optional).
  • Add target bonus (optional).
  • Record any leave of absence information.
  • Enter termination details (if applicable).
  • Save your employees.

Finally, you can click the blue “OK” button at the bottom of the screen to save your employees.

You can check your employee list or go back to the Employee Center to make sure your employee is saved correctly. Repeat this process as necessary until all of your employees (and previous employees) are successfully added to your QuickBooks account. You can also set up employee default in QuickBooks if you don’t know how to set up employee default don’t panic in below I can provide the steps that you use in your QuickBooks.

How to Set Up an Employee in QuickBooks Online

Step 1. Go to Employees in the left menu bar and select Add Employees on the right side of the screen.

Step 2. Input the employee’s name and complete Step 5. (You must already have a completed and signed W4 form from your employee, from which you will input the information on Step 1. Click Enter the W-4 form, and Input W4 generates information to their appropriate locations

Step 3. Click to return to the previous screen.

Step 4. Next, click on the pencil icon on the right side of Step 2. How often do you pay this employee? And input the pay schedule in the field that appears on the new screen

Step 5. Click the bottom right to return to the previous screen.

Step 6. Enter the employee wage rate in step 3, and then click the pencil icon in step 4, and allow the employee to enter additional exemptions, such as decorations, health care, etc., as shown in the screenshot below. (Note: QuickBooks automatically calculates and assigns the reduced tax amount based on the status you signed up for.)

Step 7. Click OK at the bottom right to return to the previous screen.

Step 8. Click Step 5 How would you like to pay your employee? And choose whether you want to pay by Paper Check or Direct Deposit. If you choose Direct Deposit, you will be taken to a screen where you can add your employee’s bank information (and, as soon as you update the information in the employee setup interview, the paycheck will be shown in the screenshot below the details).

Setup Direct Deposit for Employees Paycheck in QuickBooks Online

Step 9. Click OK to return to the previous screen.

Step 10. Now click on the profile at the top of the screen and fill in the employee address and other relevant information. Click on Employment to enter the recruitment information for the employee.

Step 11. Right click on the bottom and you are setting up your employee. (You can go to the employee at any time and edit their information.)

Sets payroll preferences and employee defaults in QuickBooks

Payroll Preferences are important tools to help you start and modify various payroll features.

1. To set payroll priorities, go to the Edit menu and select Preferences

2. Select the Payroll and Employees area, and then the Company Preferences tab.

3. Note that the No Payroll button is selected. Even if you subscribe to QuickBooks Payroll, you must indicate whether you want to process payment checks in the current company file. Click the Complete Payroll button to start payroll priority.

Set up Employee default in QuickBooks

When you appoint an employee, you should specify a payroll item in that employee’s profile. It tells amounts to add QuickBooks to an employee’s paycheque. Because most employees share the same payroll income and deductions, instead of manually providing common payroll items to each employee you set up, your payroll preference to assign the default set of payroll items to all new employees.

To enter employee default:

  1. Click Edit > Preferences.
  2. Click Payroll & Employees.
  3. Press on the Company Preferences tab.
  4. Press on the Employee Defaults button.
  5. Add or make changes to the employee default profile.
  6. Click OK to save your changes.

How can you set up an Employee in QuickBooks Payroll

This is the process to set up an employee in QuickBooks Payroll:  

  1. Go to the Employees section from the left-side menu, and click on Add Employee 
  2. Fill out the Employee Personal information, then choose the Next button
  3. Type all Details of Employment including start date, pay rate, etc., then choose the Next button
  4. Fill the Bank Details and Account Type for your Employee, then click on Next
  5. Type Tax File Declaration details 
  6. Click Done


In this blog, you can find how to create a new employee in QuickBooks. We hope our information is useful for new QuickBooks Users. If you want to get more detail about QuickBooks then you can hire a QuickBooks ProAdvisor and can ask for any detail from them.

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