QuickBooks Payroll is definitely a welcome addition for millions of business owners who were earlier having problems regarding payroll or taxes. It has features that allow users to stay on top of their schedules. If you are one of those people who is constantly forgetting or neglecting to file their taxes and hence, missing the deadline, then this software is for you.
Gone are the days when people had no other choice but to do everything manually. Today, most of the tasks related to financial accounting in businesses can be done through accounting software that has been customized according to the various sizes and kinds of industries.
However, there may be a few things that you may not know about or have a hard time to learn in terms of QuickBooks payroll taxes. This is where we try to offer tips that involve using certain features, especially if you are not an accountant by profession or otherwise related to the financial sector.
Things to Remember in QuickBooks Payroll Taxes
Given below are some things to keep in mind so that you can avoid certain mistakes and use this software properly-
Keep Track of the Various Schedules
As an employer, there are specific schedules by which to pay your taxes, and you need to be aware of them if you are going to do so in a timely fashion. These schedules may vary according to the size of your company’s payroll, so keep checking and confirming it from time to time.
Avoid Using ‘Write Checks’ for Payments
This is actually a wrong practice among users- making payroll taxes and liability payments through the Write Checks option. Rather than using it for this purpose, you should instead pay your payroll liabilities by creating checks for this specific section of payments.
Doing this will help you in the long run as your software can track your sent and due payments under each section more accurately.
Keep the SDI and SUI Rates Updated
This is something you will have to do by yourself every time the rates are revised because every state has its own SDI and SUI rates that it designates to each and every employer. Employers may have to pay different rates as well, which is why QuickBooks does not offer updates to these particular rates. Of course, this is applicable to states that actually provide SDI or State Disability Insurance.
Payroll Item Listing- Additional Information
Here are a few tips that are sure to help you get a better grip on your tax management duties-
Take a Look at the Tax Table Being Used
It won’t hurt to pay a visit to the tax table and look at the rates at least once. You can do this by clicking on the Payroll Item Listing option which you will find in the Reports Menu section of the Lists menu in the application.
The tax table is what your accounting software refers to when it needs the rates that are relevant during tax calculation.
Checking a rate
If you want to check rates in this section, refer to the Amount column in the report. Some of these rates are updated by QuickBooks when the software is updated, whereas some of these are the ones entered by you manually, like the local taxes or the SUI/SDI for your state.
Not all the taxes are tracked by QB in addition to the rates unique to you as an employer, hence the manual entries.
How to Check Wage Base Limits
There is a column, the Annual Limit column, that displays the base limits for paying taxes based on the current wages as well as the highest annual wages that fall under the tax requirements. If you want to check the wage base limit for taxes that are updated along with payroll, then you can do it here. These limits are supplied from QuickBooks payroll taxes.
These are some things that you will eventually get a grip on in case you don’t completely understand at first. The ultimate goal for any accounting software is to ensure your business’s payday and tax filings go smooth and you don’t miss deadlines or otherwise have to pay penalties of any sort. QuickBooks Online Payroll taxes can be particularly helpful for this and users should know of the tasks that they can accomplish through this application that will save them time and trouble.
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