Key Takeaways

• Intuit Quickbooks Payroll offers affordable payroll software that integrates well with Quickbooks online.
• While generally competitive with other payroll services, it may not offer as robust HR services as other providers. 
• Compare Intuit Quickbooks Payroll to other providers to decide which is best for your business needs. 

Intuit Quickbooks Payroll

Quickbooks users who also need to run payroll will want to check out Intuit Quickbooks Payroll. It offers full service payroll to calculate, file and pay state and federal payroll taxes. It will also allow you to create and download payroll reports for, bank transactions, payroll history, PTO, payments to 1099 contractors, tax payments and more. 

The main benefits of Intuit QuickBooks Payroll include:

Integration with QuickBooks: QuickBooks Online Payroll integrates seamlessly with Quickbooks Online accounting software, enabling users to manage their business and payroll in one place with a single sign-in. This integration simplifies the payroll process and enhances overall business management. It is also available for Quickbooks Desktop at separate pricing. 

Automated Payroll Taxes: The software automatically calculates, files, and pays federal and state payroll taxes, ensuring accuracy and compliance. This feature significantly reduces the manual work involved in payroll tax management and minimizes errors.

Automatic Payroll Runs: Users can create their pay schedules and set payroll to run automatically, which saves time and ensures employees are paid consistently and on time.

Enhanced Security: QuickBooks Payroll comes with automatic updates that include the latest security features, ensuring that sensitive payroll data is protected.

Free Support: The service includes free phone and chat support, providing access to payroll specialists for any queries or issues.

Easy Migration: For those transitioning from another system, QuickBooks offers assistance with data migration and setup, making the switch smoother. (Note that set up and set up assistance is available on certain plans.) 

Additional Employee Benefits: The software provides options to manage HR and payroll in one place, offer 401(k) retirement plans, provide healthcare packages, and arrange workers’ compensation insurance, adding value beyond mere payroll processing.

These features make QuickBooks Payroll a comprehensive solution for businesses looking to streamline their payroll processes, ensure compliance, and offer additional benefits to their employees.

Why Small Businesses Like Intuit Quickbooks Payroll

Quickbooks is one of the most popular accounting software programs, and business owners who use Quickbooks often find it easy and affordable to add on this feature when they need to process payroll. 

Unlike other companies that primarily handle payroll processing, such as Gusto, ADP, Rippling or Wave it’s difficult to find reviews specifically for Quickbooks Payroll. Most reviews are for Intuit Quickbooks accounting software.

Generally, though, Quickbooks is regarded as an essential tool for many small businesses, and Intuit has added other services such as payroll and some small business loan services to meet their small business customer’s needs. 

Processing Payroll

While payday is often welcomed by employees, it can be dreaded by employers, especially as their business grows and payroll becomes more complex. If you haven’t run payroll before, there may be a lot more steps involved than you realize. These include:

Onboarding New Employees: New employees must complete IRS Form I-9 form employment eligibility verification and the IRS Form W-4 for federal income tax withholding along with state tax forms. Employers are responsible for complying with any state and federal employment screening requirements. 

Determining Gross Pay: Employers must calculate how much employees are to be paid each pay period, based on salaries, hourly wages, bonuses, commissions, tips, and other forms of compensation like sick pay, vacation or holiday pay, and parental leave. 

Withholding Deductions: From gross pay, employers need to perform tax calculations, and deduct state and federal taxes (including the employee share of FICA taxes for Social Security and Medicare), employee retirement plan and health insurance contributions, plus any other benefits. Employers also withhold amounts for wage garnishments or child support.

Pay Employees on Time: It’s essential that employers pay employees on time, adhering to state and federal regulations.

Remitting Payroll Taxes: Employers must calculate their share of FICA taxes, and then make the required payments. 

Paying Benefits Providers: If you offer benefits, payments must be made to retirement plans and health insurance providers.

Managing Workers’ Compensation: If required, you’ll need to pay workers’ comp payments on time. 

Issue Year-End Tax Forms: Prepare and distribute W-2s and 1099s to employees and/or contractors, and do so on time to avoid penalties.

Record Keeping: Employers are generally required to keep payroll records for a minimum of three years to comply with Department of Labor requirements, four years for the IRS, and other lengths required by state authorities.

It’s crucial that you get it right, not only for legal and tax reasons, but also for employee satisfaction. Payroll mistakes can be stressful for your employees who rely on that money to pay their bills. 

Reporting and Paying Payroll Liabilities

Employers need to calculate, report and pay payroll liabilities on time. Tax filing may include payroll taxes (state, federal and local) as well as worker’s compensation, and benefits providers. 

Intuit Quickbooks Payroll can help with these tasks. (You’ll need to submit local taxes directly.) 

Payroll Elite customers (which now appears to be the Payroll Premium + Plus plan) are eligible for Payroll Tax Penalty Protection, which means Intuit will pay up to $25,000 if you receive a penalty for any reason. You must enroll to have your taxes filed electronically in all the states that apply. You then allow an expert to review your payroll set up and activate your protection. You’ll then need to notify Intuit promptly if you receive a tax notice, following their instructions. 

Common Payroll Topics

In addition to base payroll tasks, there are additional payroll services that may be helpful to your business. 

Employee Self Service

Employers and employees often value self-service tools that allow employees to access and update their information. Intuit Quickbooks Payroll offers a team portal and mobile app where employees can: 

• Access pay stubs, W-2s, and other pay details.
• Submit their own pay preferences, bank account for direct deposit, update employee information, personal details, and tax information.

Time Tracking

For an additional fee, you can add QuickBooks Time for automatic time tracking and tools help manage projects from anywhere. 

If you also get the QuickBooks Workforce app, your team can also clock in and out, making it easy to approve timesheets from anywhere.

HR Support Center

HR Support is provided through Mineral Inc. and is available on higher priced plans and a personal HR advisor is available on the highest level plan. (The Quickbooks website is somewhat confusing in that it appears to have renamed products but did not update those names sitewide. You will want to make sure you understand what the plan your purchasing includes.)  

Payroll Benefits

Quickbooks Payroll also offers optional health benefits and retirement benefits through partners including:

• Medical, dental, and vision insurance packages by SimplyInsured.
• 401(k) plans through Guideline

These optional benefits are at an additional cost. If your business gets benefits elsewhere you can set up those deductions in Quickbooks Payroll. 

How To Run Payroll With Intuit Quickbooks Payroll

Quickbooks Payroll software can automate key payroll tasks to make running payroll faster and easier. 

The Quickbooks website currently lists three pricing plans for Quickbooks Online Payroll:

• Payroll Core + Simple Start (currently $75/month + $6 per employee per month)
• Payroll Core + Essentials (currently $105/month + $6 per employee per month)
• Payroll Premium + Plus (currently $170/month + $8 per employee per month)

You will often see limited time offers that discount the cost for the first three months, though it’s best to compare  ongoing payroll subscription costs since you’ll likely stick with your payroll provider for years to come. 

There is also a 30-day free trial if you forgo the limited time offer. 

All plans include: 

• Full-service payroll, including automated taxes and form
• Auto payroll for salaried employees
• 1099 E-File and pay for contractors
• Expert product support – customer support via phone or chat
• Direct deposit (next day deposit on the first two plans, same day deposit on the Payroll Premium + Plus plan) 

They also include the employee portal, optional health benefits, 401(k) and worker’s comp, along with accounting software benefits. 

Remember, these prices include at least some level of Quickbooks Online accounting software. If you’re already using Quickbooks, you can reach out to determine the right plan for your business. 

Quickbooks Desktop payroll pricing runs $55/month plus $6 per employee per month, or $550 annually plus $6 per employee per month. 

You’ll be able to control money movement for direct deposit, bank transactions and secure verifications.

Nav’s Verdict: Intuit Quickbooks Payroll

Business owners who use Quickbooks already will want to consider Intuit Quickbooks Payroll. It is designed to be easy to integrate with Quickbooks and is generally competitive with services from other companies. 

It is still worth comparing to other payroll services, however. Depending on your needs, you may be able to pay less elsewhere and get additional HR features.