Sunday, March 27, 2011

QuickBooks: Doing Payroll without a Subscription Service

A small business client just hired an employee and wondered if there was a way to write a payroll check without having to subscribe to a payroll service. He was concerned about the cost and thought he could “just write a check”.

The answer is yes, it is possible to “just write a check” to pay the employee. However that is only the tip of the iceberg.

The entire payroll process includes accruing and playing liabilities for all the taxes and other withholdings, filing the federal, state and locate payroll returns on a monthly, quarterly and annual bases.

In other words, it can be complex, but not impossible. Those with a thorough understanding of all the payroll elements can set up the liability and expense accounts, get the tax table information needed and contact all the agencies for reporting, and consult with an accountant or payroll expert prior to starting the process.

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