QuickBooks Online: How to Run Payroll & Process Payroll Taxes

To setup a 30-day free trial of QuickBooks Online and then 30% off for 12 months: www.quickbookso...
E-mail Hector your questions [e-mail]
My Friend Alicia's Full Payroll, 1099, and Time Tracking Course:
hectorgarcia.c...
You can take my full QBO (does not include Payroll) 4-hour course in LinkedIn Learning with a 30-day free trial:
/ quickbooks-online-esse...
Other Videos:
-Getting Started Tutorial: • How to use QuickBooks ...
-Setup & Run Payroll: • QuickBooks Online: How...
-Navigation & Customization: • QuickBooks Online: Nav...
-Customize your Invoice/Estimate Templates: • QuickBooks Online: Cus...
-Connect your Banks / Download Transactions: • QuickBooks Online 2024...
-How to Categorize Expenses: • QuickBooks Online: How...
-Reporting Basics: • QuickBooks Online: Pro...
-Desktop to Online Conversion: • QuickBooks Desktop to ...
-Setup 1099 Contractors: • QuickBooks Online: Set...
-Standard Chart of Accounts: • QuickBooks Online 2023...
-Categorizing Dowloaded Transactions: • QuickBooks Online Tuto...
Bank Feeds & Bank Rules (Full Tutorial): • QuickBooks Online: Ban...
-Bank Reconciliations: • QuickBooks Online: How...
-Entering Transactions paid in CASH: • QuickBooks Online: Ent...
-Doing 1099 Forms: • QuickBooks Online 2024...
-Setting Up Payroll: • QuickBooks Online PAYR...
-Setup, Forms, and Pay Sales tax: • QuickBooks Online: Sal...
Official QuickBooks Online 2024 Tutorials Playlist:
hectorgarcia.c...
My favorite FREE (and Low-cost) Courses for Accountants & Accounting fans: courses.cpaaca...

[@Pancake3399]

This types vedio helpfull for us. Who has not enough money to take training. Thank you a lot hector

[@HectorGarciaCPA]

:)

[@ReigningUp]

Thank you for posting this, gives me a really good idea of how to set it up and what I need.

[@HectorGarciaCPA]

Great

[@abdirashidahmed2329]

Thank you Hector. You are great trainer. More of this will be very helpful for beginners

[@HectorGarciaCPA]

:)

[@lyssacox7941]

Thank You hector! This was helpful and it does seem simple not complicated at all for Payroll. like the Self Entry Payroll Info. for employees.😊❤

[@HectorGarciaCPA]

Yeap

[@shawnwood9875]

This wasn’t as easy as everyone thinks. Took 1.5 hours with their assistance to start this process. Oh boy was that a pain.

[@HectorGarciaCPA]

Payroll is a multi step process, specially if there is any kind of direct deposit configuration

[@Parkwayinc]

Thank you for sharing a link to my Complete Payroll tutorial in your video description! I truly appreciate your support and the opportunity to collaborate with you!

[@HectorGarciaCPA]

Your video is a great resource, one of a kind.

[@chaneleren7633]

what a wonderful explanation of the payroll and taxes. thank you so much

[@sumansharma9585]

Great Job Mr. Garcia, well explained, always appreciate 🙏

[@HectorGarciaCPA]

:)

[@HamidurRahman]

Thanks Hector to share such a helpful tutorial.

[@HectorGarciaCPA]

Glad it was helpful!

[@hew64]

My accountant says to be careful when picking a plan as most will not file the monthly, quarterly, annual tax reports and you end up doing them yourself. Could you please expand on that?? I’m trying to decide which is better to try and do myself or just pay accountant to handle payroll (s corp, 1 employee). Thank you!

[@JonahLuague]

Thank you very much. Your content is very helpful. Keep sharing!

[@jaialai6629]

Wish that Quick Books would just include all the different software when you first set up Quick Books. Don't like all the nickel and dimming. One Set up cost to open quick Books, then there is another cost for Payroll, then another cost 10 other things. Just put it all in one Startup cost and stop all the Nickeling and Dimming. By the time it's all said and done you have paid $1000 to get all the software that you need. Great work Hector.

[@HectorGarciaCPA]

Yeah, thats how it works now :(

[@jaialai6629]

@@HectorGarciaCPA Yea I know

[@ConnectionChurchOcala]

Your videos are awesome - you're such a great teacher! Do you have a video about running "Auto Payroll"? I'm anxious about trying it without knowing the exact process - I don't like taking chances with people's pay.

[@HectorGarciaCPA]

Not on auto payroll

[@sarathkumarnowpada1122]

Thank you very much Sir and I will do practice

[@HectorGarciaCPA]

Keep it up

[@faisalraj6654]

Hi Hector, If possible, can you please make a Quickbooks video about S-Corp employer working as 1099 and drawing a salary as an employee of the same S-Corp via running a Bi-weekly / Monthly Payroll. And, Quickbooks gives gives the Snapshot for both, employee and employer activities. Thanks.

[@JonahLuague]

Thank you very much for this video. It is very helpful.

[@vijayrajashree4694]

Thank You! Really Useful.

[@HectorGarciaCPA]

:)

[@Ale333.3]

Great video! Thanks for sharing

[@01adutton]

How do I enter payroll history for employees prior to starting up QuickBooks Online? The company I work for manually entered and paid paychecks and paid taxes by paper check/mail. The transactions are in QBO because they were uploaded from bank feeds, they just weren't run through the actual QBO payroll process. (she just entered them as checks) I need employees' W-2s to reflect the entire year and not just 10 months. I have all of the data but need from their paper payroll reports but need it reflected in QuickBooks. I hope that makes sense. Can you help??

[@GeleyRoseEscuadra]

Thank you sir new subscriber..your videos are helpful especially us newbie here. Do you video how smartmoving transactions synced to QuickBooks

[@HectorGarciaCPA]

Glad you find them useful

[@michaelclark8478]

This video moved very fast through the different screens. It was a little hard to follow - but great information.

[@HectorGarciaCPA]

KZbin should allow you to slow down the video and pause it

[@sluggodadon]

Very informative and helpful. Thank you 💯💯🔋

[@HectorGarciaCPA]

Glad it was helpful!

[@g5162]

When the FICA taxes are paid. Are the employee and employer portions combined and paid or are they paid with separate payments? Also, does the balance sheet show the balances of all the income tax payable accounts?

[@AshleyThomas-e9z]

Excellent Video!

[@HectorGarciaCPA]

Thank you very much!

[@motiverseminds]

Please make a video on how to use QuickBooks online free 30 Day trail. I try but there is a issue of signing

[@HectorGarciaCPA]

Free trial is USA only

[@xantorrau6947]

And i have another question. How many days it takes to make actual deposit once i ran payroll for employee who has direct deposit set and bank info in the quickbooks

[@HectorGarciaCPA]

First payroll run is 1 weekZ then 2-3 days

[@roxywan9896]

this is very useful, thank you so much!

[@HectorGarciaCPA]

:)

[@stephaniegutz1247]

Hi Hector. I've been doing manual payroll for my s-corp, employee of one (have been paying online at IRS/EFTPS monthly to deposit taxes for 941 requirements, also paying state withholding monthly). I'm trying to convert to QB payroll, but when I try to add the payroll history it's not letting me continue -- it says I'm paying the wrong percentages (per 941 0.124 for social security wages, 0.029 for Medicare wages). Could you please tell me what the percentage of the monthly 941 deposits should be taken out of employee wage so I can move forward with QB automated payroll? Many thanks for your tutorials!

[@HectorGarciaCPA]

I dont answer payroll questions like that, its too sensitive, to get it wrong. Ask your accountant to help you with the calculation

[@NadiaSilva-iu7dt]

Hi Hector, thank you very much for your videos. I paid a 3-month Quickbooks subscription to learn how to use it, my question is: I am inventing all the information that I am providing (I put my children's names, not their SS numbers as employees) and I invented a false company, will it have consequences for me later? That is, is there a problem with the IRS for filling out this non-existent payroll and tax information?

[@HectorGarciaCPA]

@@NadiaSilva-iu7dt if you filed forms then is an issue

[@KristyThePooh78]

What's your thoughts on ADP as a payroll service? My daughters use that from the accountants recommendation. We now have the same accountant who recommended them as well. I'm new to Quickbooks. Stumbled upon your video series which is greatly helping me understand how to use it. I normally do it myself, hours of looking through all our accounts to categorize it all for taxes. This looks much easier to use in general. I have 2 avenues of online sales channels. If they both pay me through our bank account, is it necessary to connect the sales channels at all? What would be the benefit if all I need is the net profit, which would be based on deposits in our bank account.

[@HectorGarciaCPA]

I like ADP. But with QB feels like you have a little more control.

[@DontActBePrompt]

ADP is Dump

[@xantorrau6947]

I have a question, when i have employee's payment set to direct deposit and his banking info in qb, when i run payroll will quickbooks actually deposit the money into employees bank acct?

[@HectorGarciaCPA]

Yea

[@newmhelemish]

Good Job, when will you relase Time video?

[@HectorGarciaCPA]

Maybe a month or two… for now look at Alicia’s class: hectorgarcia.com/payrollcourse

[@samanthazarantonello5436]

Can you explain how to add a employer contribution for child care expense so that it reflects on box 10 of their W2? I'm not able to find how to do this anywhere. Thank you!

[@HectorGarciaCPA]

I dont have an answer for this

[@AlanArnold-tk8dx]

I have QB online payroll and it stopped automatically entering the payroll taxes that QB automatically pays on my check register. Any thoughts why this has stopped working?

[@sujitsharma9865]

Hello Sir I am unable to set the payroll in direct deposit neither qbo is allowing me to set up tax payments autopay The entity is new as well as bank account We reached out the support several time more than 2 months but they're still looking into why the direct deposit is not working Can please advise

[@jamiemiller1311]

Thank you for the great info. I'm new to online QB. I merged my info from the desktop version. I'm struggling to figure out how to make changes to ss and med. My employee and employer amounts to not match. I'm pulling my hair out trying to figure this out. They have NOT been any help. Praying you can help me. TIA

[@HectorGarciaCPA]

Payroll is very delicate, i would contact support again or pay an accountant that knows QB payroll well

[@jamiemiller1311]

@@HectorGarciaCPA thank you

[@judyglidden675]

Hello Mr. Garcia, Can you please show us how to categorize QB Payroll in a journal entry? I have to split payroll based on locations but not sure how to make it work. I have search tirelessly and just cannot find any tutorials on how to make this work. Thank you!

[@HectorGarciaCPA]

This? kzbin.info/www/bejne/f4TKfXSIpstjgJosi=lPURzYQo3k3xVGiN

[@judyglidden675]

Thank you!@@HectorGarciaCPA Does it matter if it's a 3rd party payroll or QB payroll? My guess is its basically all the same setup?

[@HectorGarciaCPA]

@@judyglidden675 it matters 100% QB Payroll does not require any journal entries. It doesn everything on its own. If you need to "spread" the costs accross locations, then just do a journal entry

[@judyglidden675]

@@HectorGarciaCPA Thank you! That is EXACTLY what I was looking for, thank you, thank you, THANK YOU!!!

[@davidjones5319]

Excellent. thank you

[@HectorGarciaCPA]

You are welcome

[@sabaokbagergish2065]

Hi Mr. Hector Can you tell me the name of the software useful for payrolls? Thank you so much

[@HectorGarciaCPA]

QuickBooks, Gusto, ADP are the top ones

[@sabaokbagergish2065]

@@HectorGarciaCPA thank you so much

[@jenniferferebee5638]

If you are converting from QB Desktop where you had assisted payroll to QB Online, will employee information transfer or will the employee set up have to be done manually?

[@HectorGarciaCPA]

Most will, but there is a setup process that needs to happen prior to you running payroll on QBO

[@SandraGallegos-u6k]

Héctor, I hope you are doing well I am taking the Pro advisor QbO certification to start my bookkeeping side hustle job. In your experience what would it be the first and most important step to take before I start Thank you

[@HectorGarciaCPA]

ProAdvisor and also know all the Accounting fundamentals

[@LeeMcMaster]

Not sure if someone said this or not, but ...Social Security numbers cannot start with a 9. Only ITINs begin with 9.

[@HectorGarciaCPA]

That’s correct

[@JimCasler]

Do you know if payroll data will transfer over during a "migration" (auto transfer of file) from QBDT to QBO?

[@HectorGarciaCPA]

It comes, but there is a post conversion setup you still have to do

[@lisabell4008]

After their direct deposits go through, they show up in my bank transactions needing to be categorized. Its automatically labeled "quickbooks payments - uncategorized expense", do i need to go through and update each individual direct deposit to each employee in the "employee/vendor section" and how do i categorize it properly since it is not an uncategorized expense. Also, am I able to skip adding which employee the direct deposit was for?

[@HectorGarciaCPA]

Well, if you are using QuickBooks Payroll, all those payments should be automatically categorized, are you using an outside payroll company?

[@PangVang-b6c]

Hi Hector. I currently have QB Gold Enterprise with cloud support. Is that different than QB online?

[@HectorGarciaCPA]

Night and Day

[@CCAFO]

Hello, please help to instruct me how to import employee list in QuickBooks Online! Thank you in advance for your help!

[@HectorGarciaCPA]

There is no easy way to do it. You can only import a limited set of data via the Payroll menu

[@whosurmama325]

Hi Hector, If we are using a desktop payroll, is there a means to import the current records into the online version?

[@HectorGarciaCPA]

You CANNOT just import payroll transactions

[@UIdrobinson1]

Is there some magical thing that needs to be done to fix Payroll Journal Sync Errors? We migrated from Desktop to Online and have done 2 payrolls which have not been synced. We have been on the phone with QB Experts at least once a day almost every day since the 20th of February with no resolution. Can you help with this?

[@HectorGarciaCPA]

No magic thing.

[@JTCJTC-vj3ke]

Hi Hector Does this apply to QB Canada too? Thanks.

[@HectorGarciaCPA]

Not sure

[@Selmjl]

Hector, what account should I post penalties and interest from the payroll liabilities ?

[@HectorGarciaCPA]

“Tax Penalties Expense”

[@Selmjl]

@HectorGarciaCPA create a separate account on chart list and to other liabilities

[@BettyPaez-o8s]

How can I apply a different hourly rate within the same pay period? For example, an employee earns $25 per hour this week, but after their trial period, they will earn $30 per hour in QBO. Thank you!

[@HectorGarciaCPA]

No, its designed to be one rate

[@emmylousanpedro8529]

Hi Hector, I was transitioning from QB desktop to QB online. Is there a way that I can pay employee commission only and track it to customer, class or project like on the QB desktop? I don't see it unless I create a timesheet for them, but the problem is they are paid by commission (piece of work) to different customer/project not an hourly rate.

[@HectorGarciaCPA]

Unfortunately, only works in timesheets; so the comission cannot be tracked by project

[@emmylousanpedro8529]

​@@HectorGarciaCPA Thank you for answering. I am a big fan. Would you recommend if we are a construction company and a contractor to integrate in QB online?

[@jorgeastudillo4342]

excelente video , tienes este video en Español ????

[@HectorGarciaCPA]

No

[@jorgeastudillo4342]

@@HectorGarciaCPA en donde puedo encontrar estas instrucciones en espanol ??

[@ranjithayadati2330]

Hi Hector, Can we change the answer the first question to No. because the previous employer paid for the employees before we took over, for which i said yes, while setting up.. but i do not have that info with me to give in the payroll history. Pls suggest!! Thank You!

[@HectorGarciaCPA]

I dont remember. I would contact support

[@kimhongnordstrom9139]

Can we process payroll with QB Online while waiting for the state tax ID? One Quickbooks agent told me that I can just enter a random number to tax ID box and update it later once I receive the tax ID from the state. Is it correct? Thank you for all of your wonderful videos

[@HectorGarciaCPA]

Yes add all 9’s then change it

[@kimhongnordstrom9139]

@@HectorGarciaCPA Thank you.

[@ShahzaibKhan-rn8kg]

Sir, I am an accountant having 9 years of experience, I want to start bookkeeping business remotely, what would you recommend? Should I go for QB certification? And should I focus on a niche like e-commerce?

[@HectorGarciaCPA]

You should do both.. get certified AND focus on a niche

[@barbiemorrisey9937]

Hi! Is there a way to set up payroll to run seasonal. I have 12 seasonal employees who are paid from October thru March. Also ALL my employees are 1099 is there a way to set that up for them automatically?

[@HectorGarciaCPA]

1099 means they are contractors; not employees. So there is no special setup

[@songpak9071]

hi, hector How s-corp business owner get paid through payroll?

[@HectorGarciaCPA]

@@songpak9071 the same way employees do. There is no difference

[@Ackdummies]

Hector, if I am the owner of the corporation should I register as an employee?

[@HectorGarciaCPA]

If you are going to run payroll yes

[@rosar.9618]

Hello when i run payroll it doesn’t deduct anything for federal is that supposed to be entered manually or is it an error

[@HectorGarciaCPA]

If the employee makes little, and the W-4 has certain specifications, it could end up like that

[@valerierosales1419]

If your self employed do you still add in employee information

[@HectorGarciaCPA]

If you are running payroll, yes

[@ashaarun6819]

Please help me to add severance pay?

[@HectorGarciaCPA]

Not my area of expertise

[@javiduss]

What if a worker don’t work 40 hours what if every week the worked hours fluctuates?

[@HectorGarciaCPA]

There is a timesheet feature

[@adrianacuevaszamora7098]

CAN YOU LINK THE TIME CLOCK???

[@HectorGarciaCPA]

Yes. “QuickBooks Time” its fully integrated. I dont know what time clock you have

[@jonaspxpimentel1296]

How s-corp business owner get paid through payroll?

[@HectorGarciaCPA]

Like a normal employee, the same way its explained in this video

[@stepht3825]

What if you don’t have the benefit of starting fresh?

[@HectorGarciaCPA]

You might need an expert to help you clean it up

[@gonzalex2002]

porque no deja poner el tin number cuando el empleado no tiene un seguro socia?

[@HectorGarciaCPA]

Aolo funciona con Social

[@HectorGarciaCPA]

Solo Social

[@merianisruiz5623]

thank you

[@HectorGarciaCPA]

You're welcome

[@gonzalex2002]

Hector yo tengo mi contador y el hace los pagos de Payroll liabilities mi pregunta es: se puede pagar los payroll liabilities Inside the Quickbooks online ? solo quiero tener todo update sin mandar nada de mi lado porque mi contador los manda por mi quiero hacer esto mientras veo si quickbook online trabaja para mi y en un futuro mi contador usa online version

[@HectorGarciaCPA]

Si, pero tienes que tener el servicio de Payroll separado

[@MoraHoffman]

Would you recommend QB Payroll to clients with only 1-4 employees?

[@HectorGarciaCPA]

Yes, for 1-150

[@innerbeauty6877]

Can we set this up for contract employees

[@HectorGarciaCPA]

For contractors you can set them up, but not as “payroll/employees”

[@innerbeauty6877]

@@HectorGarciaCPA Thank you!

[@SabriHaimour]

How to re-hire an employee?

[@HectorGarciaCPA]

Never done it before, so not sure there is anything special other then just start givng them a paycheck

[@Louelectricllc]

if I'm self employed can I get on the payroll?

[@HectorGarciaCPA]

Yes if you have an Scorp. No if you dont have a business or have a single member LLC

[@NoelLackey]

How do you record payroll if you don't have the payroll module?

[@HectorGarciaCPA]

Not possible.. you can only do “payroll with the module. Otherwise you just enter a check/expense/journal to account for payroll transactions outside of QB

[@noellackey104]

@@HectorGarciaCPA yes that is what I am doing but it is not very satisfactory

[@HectorGarciaCPA]

@@noellackey104 all manual things are :)

[@noellackey104]

@@HectorGarciaCPA yes true I asked for that ;-))

[@noellackey104]

We use a different companies payroll package the bank pulls in the net pay for all employees but what else needs to be recorded in quick books online

[@nereidaenriquez5602]

Do you have experience with zen business?

[@HectorGarciaCPA]

No

[@guiaobed4289]

how do fix payroll federal taxes past due?

[@HectorGarciaCPA]

Would be an adjustment

[@guiaobed4289]

@@HectorGarciaCPA Would be J/E correct?

[@carmenlugo5511]

hello, I'd love the code for 12 months for payroll. Thanks.

[@HectorGarciaCPA]

Email me.

[@HectorGarciaCPA]

[e-mail]

[@sriyanipremasiri6760]

Hi Hector,I hope to join a bookkeeping/Accounting firm as an virtual employee. I like to work for US,UK,Australian or New Zealand bookkeeping firms. I live in Sri Lanka(My country-It is south Asian country).How can find a job?

[@HectorGarciaCPA]

Apply for a job posting

[@michelesanders2032]

What is the link to receive the 50% off?

[@HectorGarciaCPA]

No longer exists.. only 30% off for 12 months or 50% for 3 months

[@michelesanders2032]

@@HectorGarciaCPA Ok thank you!

[@liannetorres6559]

How do I subscribe to 30%

[@maricarmenarmijos1737]

Unas clases en español porfavor

[@HectorGarciaCPA]

No tengo con este nivel de detalle en KZbin en español

[@listentome1263]

WORKS FOR PUERTO RICO?

[@HectorGarciaCPA]

I dont think so

[@trevorfarragut6528]

Quickbooks payroll is incredibly frustrating and annoying

[@HectorGarciaCPA]

It has a LOT of room for improvement

[@trevorfarragut6528]

@HectorGarciaCPA Your video helped me a lot. It also helped me truly understand just how much the people before me messed up. There is just so much to fix.