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Setting Up Employees in QuickBooks


After you setup payroll you need to setup employees. QuickBooks will need the following information for each employee:

  • Full name
  • Address
  • Social Security number
  • Current wage/salary
  • Payroll filing information, such as a W-4
  • Information on deductions, contributions, and payroll additions 

The first page in Payroll shows the pay method you selected earlier in the interview.  If there is one method you use more than another (meaning it applies to all or most of your employees), make sure that item is selected in the left column of the list. Click on Next to continue.

The next page again reviews some information you entered earlier. Here you see the payroll items that apply to all or most employee paychecks. Because all three employees at The Write Company use the Daycare Co-Pay contribution and are covered by medical insurance, these two items are selected. Make any changes and click on Next.


The next page asks which federal taxes apply to all or most of your employees. Click on the ones that apply. Click on Next co continue. Choose the state in which you file payroll taxes; click on Next.


Do you want QuickBooks to track sick time for your employees? If so, click on Yes. If not, click on No. Click on Next to continue. You then choose how often you give sick time co your employees (at the beginning of the year or every pay period), specify the number of hours you give to each employee, and enter the total number of sick hours an employee can have. Finally, you specify whether to have QuickBooks reset the sick time to zero at the beginning of the year.


The next question asks you whether you want to crack vacation time. You can crack this much the same way you crack sick days by allocating a certain amount for the year or assigning an amount per pay period. If you want to crack vacation time, click on Yes; otherwise, click on No. Click on Next to continue.


In the next page, you choose the accrual period, enter the number of hours, a n d specify the maximum number of hours and choose whether you want the number reset at the beginning of each year. The information for The Write Company is described in the sidebar.  Also, if you need training the best site I recommend is:

The QuickBooks Training Community

You can learn online and its easy with great support. Highly recommended.

Tax Strategies and the Government


The first move to make to stay in good status with the Internal Revenue Service is file your tax return on time including extensions. In case you are seeking more deductions and want to exaggerate, be certain that you're deducting an item that is comparable in amount. The first thing the IRS computers do is do a comparison of your write offs with your income to see if its reasonable. From the IRS' point of view, they most likely deal with numerous taxpayers who are deceitful and attempting to play the tax deterrence game. However, some of my online tax services clients are in that group and either made an oversight or have different deductions due to their tax situation.


The Internal Revenue Service audits more people every single year, but typically focus on high income taxpayers. Except if you are deceitful or doing something inappropriate, the IRS is not so unpleasant. A tax agent likes whenever a tax professional helps the man or woman that is under audit. The biggest areas where the internal revenue service is stepping up their review of taxpayers is Substantial fluctuations in revenue or expenses from last year to this year They might have to verify some statements or other supporting info included in your tax return.


The quantity of IRS audits is likely to increase across the next couple years. That's what W-2's and 1099's achieve. The Internal Revenue Service has considerable collection capabilities. They also have distinct audit programs made for specific disciplines to routinely find something abnormal based on the circumstances. They will also give out administrative summonses to third parties thought to hold applicable information. One of my clients is in fact having a levy placed on his bank account right now.


IRS audits increased by 7% from 06 to 07. But the fact is only about 1% of all tax returns will be selected for an audit. Your odds of an audit are low, but overstated deductions might bring more scrutiny. For example, you could have many legitimate deductions and although it's beneficial to write off many expenses in connection with a business, the IRS may want to double check based upon your tax scenario. 


In cases regarding tax liens, it is important to note that these may only be eliminated in a Chapter 13 bankruptcy case. Fascinating celebrity case: California's tax lien record documents Sinbad's home address as a office in Chicago. The Internal Revenue Service lists his residence as a multimillion-dollar residence in Hidden Hills, Calif. Here he is trying to place himself outside of California where he owes California back taxes, but thankfully a Long Beach CPA helped him out