In this video, author Jess Stratton shows how to create your own payroll items, such as a dental deduction for health and dental insurance.
- [Instructor] I still have the sample product based company open from the last video. When you turn on payroll and when you complete the payroll questionnaire, QuickBooks sets up most of the payroll items for you but you can add more. To do that, select Employees from the top menu. Hover your mouse over Manage Payroll Items and then select View/Edit Payroll Item List. This is the list that gets populated when you turn on payroll, subscribe to a service and completed the questionnaire. For example, you can see all your items such as vacation, overtime, regular pay, even mileage reimbursement.
Remember that we saw all of that in the previous video in the questionnaire. To add a new payroll item, click Payroll Item from the bottom left hand side of the screen and choose New. This is going to bring up the Add New Payroll Item List. You can choose whether or not you want to use the easy setup dialog box or a custom setup. I'm going to choose custom because it gives us the most options to choose from. Click the blue Next button and the first thing I'll need to decide is what type of payroll item this is. Is it a wage, addition, deduction, a company contribution such as employer 401k or a special tax? I'm going to choose Deduction because I'm going to set up a dental payroll item type.
Click the blue Next button and enter a name for your deduction. I'll simply call this one Dental. Click Next. Here's where you can put in the dental agency and then the account number that they give you. You also need to choose the account in which you want QuickBooks to track this. It defaults to Payroll Liabilities but you can create your own sub-account. In fact, I have a Payroll Liability account that I created myself before this. Remember, even in a company file, you can create new accounts.
Directly underneath the Health Insurance Payable which is there, I added Dental Insurance Payable. I'm going to use that as the account. Click the blue Next button and here's where I can choose any tax tracking types. I'm going to click Next for now. I can also see any tax items that are affected by this. I can change these at any time. So if you're going through and you're not sure which values to fill in, you can either click the Back button. For example, click Back once you find out what your account number is through the agency.
You can come back here and fill it in. In fact, you could also go through this, save it and come back in and edit it later and I'll show you how to do that. I'm going to click Next for now. You can decide how it's going to calculate the value for this deduction. For example, do you want to calculate it based on quantity or it could be an amount based on hours worked. In this case, it's going to be a flat amount per paycheck so I'll leave it as Neither and click Next. Here's where we calculate whether we wanted it based on gross pay or net pay.
I'll click Next. Finally, we have to choose the default rate. In this case, I'm going to choose $100. I'll click the blue Finish button. Click Okay and now I can set up a scheduled payment for this item. I'm going to show you how to do that when we set up our employees but for now, I can see my new deduction and if I want to edit it at any time, I can right click it and choose Edit Payroll Item. Here's where I get back into that questionnaire. I can click Next and here's where I could come in and populate the agency and that identifier number once I have it.
I'll click Cancel for now. I can close out of everything by clicking the x in the top right hand side of the screen and I'm brought back to the home screen. Just to recap what we've done. We added our own items to be deducted from our employees' paychecks and we got there by selecting Employees from the top menu, going to Manage Payroll Items and choosing View/Edit Payroll Item List.
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- Setting up a new company file
- Working with the chart of accounts
- Adding bank accounts and credit cards
- Adding service or inventory items
- Setting up sales tax
- Adding customer, vendor, and employee profiles
- Billing customers
- Receiving payments
- Recording deposits
- Handling refunds and credits
- Paying employees
- Sharing QuickBooks with others
- Running reports