17 Nov Payroll Tax Service Options
Payroll Tax Service Options
Before the payroll function within QuickBooks can be used, a decision needs to be made regarding which payroll tax table service will be used. Both the Do It Yourself (formerly Basic) and Assisted (formerly Deluxe) require Internet access and a unique Employer Identification Number (EIN). The Internet access is the way in which the most recent tables are received. Beginning in 2002 the option for diskette versions of the tax tables are available again for Do It Yourself subscribers.
For the Do It Yourself service, no payroll detail data is transmitted by QuickBooks to the service, only tax tables are downloaded and direct deposits transmitted, if appropriate. For the Assisted service the payroll information is transmitted and the service handles all of the tax payment and payroll tax return logistics. The Assisted service always requires that the most recent version of the software be used. One copy of any new version is usually sent at no charge to the Assisted service subscriber. For example, version 2003 became available in December 2002 and the clients who are using the Assisted service were required to update by May 5, 2003. If more than on license is requiredfor multi-user access, addtional copies of the software must be purchased. No matter which option is chosen, it is extremely important to keep the tax tables current.
Below is a chart that details the various QuickBooks payroll and tax service options that are available. There is no way in QuickBooks to manually update the payroll tax tables for calculation purposes. Depending on the version, QuickBooks has handled the situation of an expired tax table differently. Some of the versions provide a few warning messages for each tax amount, others provide the message for every single tax on the way “into” the paycheck and again on the “way out,” and still others completely zero out the tax tables.
TRICK: For accountants who process payroll for multiple clients, using the same registered version of the software only one subscription is required then additional tax employer identification numbers can be submitted to the service to receive another code to permit processing payroll in multiple company files.
TRICK: There are also some versions of the software that require the do it yourself tax table to permit printing Form 1099s through the system.
TIP: Intuit also has a payroll service option called Complete Payroll. With this alternative, the payroll can be called or faxed to the service they handle everything from generating the checks, all reporting requirements, etc. It is also possible to import the information into QuickBooks.
Features |
QuickBooks Payroll (included in software) |
QuickBooks Online Payroll Tax Svc & software (Do It Yourself) |
QuickBooks Online Payroll Tax Svc & software (Assisted) |
Payroll Data Entry |
Included |
Included |
Included |
Earnings & Deductions Calculations |
Included |
Included |
Included |
Paycheck Printing |
Included |
Included |
Included |
Form Printing (W-2, W-3, 940, 941) |
Included |
Included |
Included |
Tax Table and Form Updates |
|
Included |
Included |
Electronic Paychecks (Approx. $1.50/paycheck) |
|
Available |
Available |
Electronic Tax Filing (940, 941) |
|
|
Included |
Electronic Tax Filing (W-2 forms) $25 Fee + $2/form |
|
|
Available |
Electronic Payroll Tax Payment |
|
|
Included |
Payroll Guidance Through 800 Number |
|
|
Included |
For which versions is the service available? |
|
Current and two previous (i.e. 2002, 2003, and 2004) |
Current version (i.e. 2004) |
Approximate Cost at time of this printing |
Included, however a one of the two services will be required to use it. |
$169/year (free trial period) |
Set Up Fee of $75. Starts at $49/month. Call 1-800-332-4844 for free quote. |
To continue with the payroll set up in QuickBooks, the next step is to choose the online payroll service to be used. A wizard is there to provide guidance in choosing an appropriate option.