Create Employee Profiles in QuickBooks Desktop Payroll

Creating employee profiles in QuickBooks Desktop Payroll is a crucial step for effectively managing payroll and ensuring accurate records of employee information. QuickBooks Desktop Payroll offers a robust set of features to manage employee data, track work hours, and ensure compliance with tax and labor laws. This comprehensive guide will walk you through the steps to create and manage employee profiles in QuickBooks Desktop Payroll.

Introduction

QuickBooks Desktop Payroll is a powerful tool designed to help businesses manage their payroll processes efficiently. One of the key features of QuickBooks Desktop Payroll is the ability to create and maintain detailed employee profiles. These profiles store essential information about each employee, including personal details, employment data, payroll information, tax details, and benefits. By setting up accurate and comprehensive employee profiles, businesses can ensure smooth payroll processing and compliance with legal requirements.

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Setting Up QuickBooks Desktop Payroll

Before you can create employee profiles, you need to ensure that QuickBooks Desktop Payroll is set up correctly. Here are the steps to get started:

1. Install QuickBooks Desktop: If you haven’t already, install QuickBooks Desktop on your computer. You can purchase and download it from the official QuickBooks website.
2. Set Up Payroll Service: Subscribe to a QuickBooks Desktop Payroll service plan that suits your business needs. You can choose from Basic, Enhanced, or Assisted Payroll services.
3. Activate Payroll in QuickBooks: After subscribing, activate the payroll service in QuickBooks. Go to the ‘Employees’ menu and select ‘Payroll,’ then follow the prompts to activate your payroll service.
4. Configure Payroll Preferences: Set up your payroll preferences by going to the ‘Edit’ menu, selecting ‘Preferences,’ and then choosing ‘Payroll & Employees.’ Configure settings such as payroll schedules, employee benefits, and tax details.

Navigating the Employee Center

The Employee Center in QuickBooks Desktop Payroll is your central hub for managing employee information. To access the Employee Center, follow these steps:

1. Open QuickBooks Desktop: Launch QuickBooks Desktop on your computer.
2. Navigate to Employee Center: Click on the ‘Employees’ menu at the top of the screen and select ‘Employee Center.’

In the Employee Center, you will see a list of existing employees, along with options to add, edit, and manage employee profiles.

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Adding a New Employee Profile

To add a new employee profile in QuickBooks Desktop Payroll, follow these steps:

1. Open Employee Center: As mentioned above, go to the ‘Employees’ menu and select ‘Employee Center.’
2. Add New Employee: In the Employee Center, click on the ‘New Employee’ button located at the top left of the screen.
3. Select Employment Type: Choose the type of employee you are adding (e.g., Regular, Contractor, or Officer).
4. Enter Employee Information: You will be prompted to enter various details about the employee. These details are categorized into different sections for better organization.

Entering Employee Information

Personal Information

1. Full Name: Enter the employee’s full legal name (first name, middle initial, and last name).
2. Social Security Number (SSN): Enter the employee’s Social Security Number. This is essential for tax reporting purposes.
3. Address: Enter the employee’s home address, including street, city, state, and ZIP code.
4. Phone Number: Enter the employee’s contact phone number. Ensure this is up-to-date for communication purposes.
5. Email Address: If applicable, enter the employee’s email address.

Employment Information

1. Hire Date: Enter the date the employee was hired.
2. Job Title: Enter the employee’s job title or position within the company.
3. Employee ID: Assign a unique employee ID, if applicable. This can be useful for internal tracking.
4. Department: Specify the department or division where the employee works.
5. Employment Status: Indicate whether the employee is full-time, part-time, or temporary.

Payroll Information

1. Pay Frequency: Select the pay frequency (e.g., weekly, bi-weekly, semi-monthly, monthly).
2. Pay Rate: Enter the employee’s pay rate. This could be an hourly wage or a salary amount.
3. Pay Method: Choose the method of payment (e.g., check, direct deposit).
4. Overtime Rate: If applicable, enter the overtime rate for the employee.
5. Additional Pay: If the employee receives additional compensation (e.g., bonuses, commissions), specify the details.

Tax Information

1. Federal Filing Status: Select the employee’s federal filing status (e.g., single, married, head of household).
2. Allowances: Enter the number of allowances the employee claims for federal tax withholding.
3. Additional Withholding: If the employee requests additional federal withholding, enter the amount.
4. State Tax Information: Enter the employee’s state tax information, including filing status and allowances.
5. Local Tax Information: If applicable, enter local tax details based on the employee’s location.

Additional Information

1. Emergency Contact: Enter the name and phone number of the employee’s emergency contact.
2. Custom Fields: If your company uses custom fields for additional information, enter the relevant data.

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Setting Up Employee Compensation

Hourly Wage

1. Hourly Rate: If the employee is paid an hourly wage, enter the hourly rate in the ‘Pay Rate’ field.
2. Overtime Rate: Specify the overtime rate, which is typically 1.5 times the regular hourly rate.
3. Shift Differential: If the employee receives a shift differential, enter the details.

Salary

1. Salary Amount: If the employee is salaried, enter the annual salary amount.
2. Pay Period Salary: QuickBooks will automatically calculate the salary per pay period based on the pay frequency.

Commission

1. Commission Structure: If the employee earns commissions, define the commission structure (e.g., percentage of sales).
2. Commission Rate: Enter the commission rate or percentage.

Entering Employee Benefits and Deductions

Health Insurance

1. Plan Type: Select the type of health insurance plan the employee is enrolled in (e.g., HMO, PPO).
2. Employee Contribution: Enter the amount the employee contributes to the health insurance premium.
3. Employer Contribution: Enter the amount the employer contributes to the health insurance premium.

Retirement Plans

1. Plan Type: Choose the type of retirement plan (e.g., 401(k), IRA).
2. Employee Contribution: Enter the percentage or amount the employee contributes to the retirement plan.
3. Employer Contribution: Enter the percentage or amount the employer matches or contributes.

Other Deductions

1. Garnishments: If the employee has any wage garnishments, enter the details.
2. Union Dues: If applicable, enter the amount of union dues deducted from the employee’s paycheck.
3. Other Deductions: Enter any other deductions, such as charitable contributions or loan repayments.

Reviewing and Saving the Employee Profile

After entering all the necessary information, it is crucial to review the employee profile for accuracy. Here are the steps:

1. Review Details: Carefully review all the information entered, including personal details, employment information, payroll information, tax details, and benefits.
2. Verify Accuracy: Ensure that all data is accurate and up-to-date. Double-check critical information such as Social Security Number, pay rate, and tax withholdings.
3. Save Profile: Once you have verified the accuracy of the information, click the ‘OK’ or ‘Save’ button to save the employee profile.

Managing Employee Profiles

Editing Employee Information

1. Open Employee Center: Go to the ‘Employees’ menu and select ‘Employee Center.’
2. Select Employee: Click on the employee’s name whose information you want to edit.
3. Edit Profile: Click the ‘Edit Employee’ button and make the necessary changes.
4. Save Changes: After making the changes, click ‘OK’ or ‘Save’ to update the employee profile.

Terminating an Employee

1. Open Employee Center: Go to the ‘Employees’ menu and select ‘Employee Center.’
2. Select Employee: Click on the employee’s name who is being terminated.
3. Edit Profile: Click the ‘Edit Employee’ button.
4. Terminate Employment: Enter the termination date and reason for termination.
5. Save Changes: Click ‘OK’ or ‘Save’ to update the employee’s status.

Rehiring an Employee

1. Open Employee Center: Go to the ‘Employees’ menu and select ‘Employee Center.’
2. Select Employee: Click on the terminated employee’s name.
3. Edit Profile: Click the ‘Edit Employee’ button.
4. Rehire Employee: Update the hire date and change the employment status to active.
5. Save Changes: Click ‘OK’ or ‘Save’ to rehire the employee.

Conclusion

Creating and managing employee profiles in QuickBooks Desktop Payroll is essential for accurate payroll processing and effective employee management. By following the steps outlined in this guide, you can ensure that all necessary information is captured, maintained, and updated efficiently. Remember to review and verify the data regularly to keep your records accurate and compliant with legal requirements. If you encounter any difficulties or have specific questions, QuickBooks offers QB Desktop Support services that can be reached at +1-855-838-5970 for further assistance.

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