How to Create Pay Stubs in QuickBooks Online?

Setting up pay stubs in QuickBooks Online is amazingly easy and saves a great deal in making sure your employees have the information they need promptly regarding their pay. In this tutorial, you will learn how to set up pay stubs in QuickBooks Online, including some tips that will make creating painless and seamless pay stubs.

Understanding Pay Stubs in QuickBooks Online

Pay stubs are documents to represent employee earnings within a specific pay period. From that fact alone, printing pay stubs using QuickBooks Online would be rather effortless, as it is integrated directly with a Zero out Payroll Liabilities system so no mistakes occur. Before you create pay stubs, make sure the payroll system is set up and employees have been added.

Setting Up Your Payroll in QuickBooks Online

Before you can create pay stubs, you must have your payroll set up in QuickBooks Online.
To Set Up Payroll:

Click the Payroll tab.

Tap Setup Payroll to get started with your paycheck setup: select your pay schedule and answer a few business questions.

Add Employees:

Click the Payroll tab, then click Employees.
Click on «Add an employee, then fill in all of the information including the employee’s name, address, Social Security number, and pay rate.
You will also want to make sure that the appropriate tax information is added so the correct information is stated when running payroll.

Run Payroll

To create pay stubs, you first have to run payroll for the pay period.

Next, you will want to

Begin a Payroll Run: Click on the «Payroll» tab then click «Run payroll.» Select which employees you want to process payroll. You can choose either ‘All employees’ or ‘Select employees.

Enter Hours Worked:

If your employees are hourly, in this text box, you will type in your hours worked during the pay period.
If your employee is salaried then QuickBooks calculates his/her pay based on his salary. Review Deductions and Taxes:

QuickBooks will automatically calculate federal and state taxes in addition to any deductions you have established, such as health insurance or retirement. Take a second to review these amounts to make sure they are accurate.

Run Payroll: Now that you have gone through and double-checked that all information is correct, click the «Submit payroll.

QuickBooks will now begin the processing of payroll, providing paychecks only to those employees that are listed.

Create Pay Stubs
Payroll run and you’re now ready to view pay stubs.

How to View Pay Stubs:

To view pay stubs, simply head back to the «Payroll» tab and click on «Employees.

Find the employee you want to generate a pay stub for and click on his or her name.

View Paycheck History:

There is an option labeled «Paycheck List» or «Paycheck History» inside the Employee Profile.

Click on it to list down all the paychecks generated for that employee.

Pay Stub Selection.

Identify the particular paycheck falling on the pay period you are working for in creating a pay stub.

Click on that specific paycheck to view it in detail.

Print/Email Pay Stub:

You could either print the pay stub or email the same directly to the employee.

Print: You will have to set your printer settings correctly.

Email: You would then have to fill in the employee’s e-mail and, if you so wish, change the message.

Record-Keeping

Record-keeping is cardinal for compliance issues and auditing purposes.

Save Copies

Keep e-copies of all payslips generated on QuickBooks Online. The system will automatically archive these documents but allows you to download them, should you wish, into your records.

Year-End Processing:

By year’s end, you would be required to create W-2 statements of the employee’s earnings that are coupled with the total amount of tax withholdings. You can use QuickBooks to help you generate such statements as well.

Additional Tips

Periodical Updates: All of the employees’ information needs to be updated in time, such as salary variations, variations in deductions, or even changes in tax information. If that is updated, it will be updated for future pay stubs.

Generate Reports: QuickBooks Online does have a payroll set of reports that helps review payroll expenses, trends, and lots more. Avail yourself of these reports to plan your financials better.

Compliance Awareness: Be aware of new payroll laws effective dates, or any new tax regulations in your state.QuickBooks Online does add updates quite frequently to their system and they do provide additional resources to help keep you on the right track.

Employee Access: Enable QuickBooks to provide access to them via an employee portal. They can view and print their pay stubs via the employee portal since it should be more transparent and simpler for them to do so.

Conclusion

QuickBooks Online offers pay stubs for one of the most critical activities that any organization with employees will undertake. The foregoing steps will be very helpful in organizing a payroll system that pays employee earnings on time promptly and on time. That keeps your payroll operations effective, so you can grow your business by using the power of QuickBooks Online.