QuickBooks Payroll Review 2023: Pros, Cons, Alternatives

QuickBooks Payroll allows you to input an employee’s direct deposit details while running payroll and even change pay methods—from direct deposits to paychecks and vice versa. Note, however, that you need a subscription to QuickBooks Payroll’s premium plans to access the time tracking how does quickbooks work solution, QuickBooks Time. As you add basic staff information into QuickBooks, you have the option to input your employees’ email addresses. This allows the system to send them a link to view their pay stubs and W-2s via QuickBooks Workforce, the provider’s self-service online portal.

  • If you are adding them manually, you can start just with the name and email address.
  • Before payroll runs each pay period, you’ll get a preview email with the opportunity to make changes.
  • Understanding the difference between each form can help you classify workers accurately.
  • Small business owners can pay and manage their teams with integrated payroll, and access HR, health benefits, and more.

When you add in researching benefits providers, 401k management, and staying up to date with changing employer taxes, we’re talking about a lot of time being spent elsewhere. As a small business owner, you already have a lot on your plate managing your business. Making the switch to a payroll service gives you back more time to invest in yourself and your business. Processing payroll is easy and intuitive with QuickBooks Payroll. Keep reading to see why it’s one of our favorite payroll softwares for small businesses.

You’re in good company

QuickBooks Desktop Enhanced Payroll requires a supported version of QuickBooks for Windows (sold separately). Terms, conditions, features, service and support options are subject to change without notice. Active subscription, Internet access, Federal Employer Identification Number (FEIN), and U.S. billing address required. Small business owners can pay and manage their teams with integrated payroll, and access HR, health benefits, and more. Our payroll software also includes same-day direct deposit and automatic tax filing, which is backed by tax penalty protection. Starting at $40 per month plus $6 per person per month, Gusto stands out as payroll software that puts an emphasis on HR and employees.

If you wish to stop paying one or more of your employees via Auto Payroll, you need to unenroll them. Sign in to QuickBooks Online as the Primary Admin, then choose which employees you want to pay with Auto Payroll. Money movement services are brought to you by Intuit Payments Inc. subject to eligibility criteria, credit and application approval. There are many excellent payroll processing apps such as OnPay, Gusto, ADP, Paychex, etc. available in the market. We provide third-party links as a convenience and for informational purposes only.


Most companies will need to set up a payroll system at some point—even if you only have one employee. And while it may not be the most glamorous part of running a business, it’s still essential. All plans come with 24/7 chat support and phone support 6 a.m. The Elite plan includes a callback option to minimize wait times.

how does quickbooks payroll work

QuickBooks calculates, files, and pays your payroll taxes for you. They make it easy to calculate and set up deductions and garnishments from each paycheck and you can create easy-to-read reports for payroll history, PTO, and contractor information. QuickBooks has an easy-to-use dashboard from where you can manage the payroll of your employees as well as independent contractors. Once you enter personal and payment details, payroll is calculated automatically on the pre-decided date.

Is QuickBooks Payroll Right for Me?

Auto Payroll doesn’t work for commission-only employees, inactive employees, or 1099 contractors. We don’t recommend using it for hourly employees whose hours change each pay period. Full-time employees need a
Form W-2 and contractors and self-employed workers need a Form 1099. Get an expert to help you manage employee payment, taxes, government compliances and other payroll-related activities. You can do it yourself or let us help with expert migration assistance, step-by-step guides, demos, and free phone and chat support. We also offer expert-led webinars, easy-to-use guides with no additional cost.

QuickBooks has a wide variety of software offerings for small business owners. Two of the most popular include QuickBooks Payroll and QuickBooks Online. QuickBooks Online focuses more on bookkeeping and accounting, whereas QuickBooks Payroll focuses more on payroll and tax filing.

Employers must also deduct local and federal taxes, Social Security, unemployment insurance, and more. Then the company must disburse paychecks to employees on payday. Luckily, there are plenty of alternative payroll software available. We recommend checking them out if you have international employees, require a lot of built-in tools or are looking for a professional employer organization. There are also better options if you’re in need of a free trial. Now you’ll need to enter the rest of your employees’ personal data and answer some other questions about how you want to run payroll going forward.

  • Such features can help increase employee satisfaction and transparency.
  • Note that the system will require you to input year-to-date (YTD) payroll details and tax payments made for each employee later in the setup.
  • QuickBooks Payroll Elite plan services include free multi-tax state and federal tax filing.
  • Gusto users can get a same-day direct deposit only if they sign up for Gusto Wallet.
  • You can either export the reports to Microsoft Excel or print them directly.
  • For those with the Premium plan, an expert will review your payroll for you to ensure everything is accurate.

You’ll only need to worry about this the first time you run payroll for a particular employee. QuickBooks will save this information in the future, allowing you to skip directly to Step 5. In the meantime, though, here’s the lowdown on the details you’ll need to add.

Leave a Reply