Question

Discuss how QuickBooks can ensure a company is compliant with payroll taxes. Is there a difference between manual payroll and online payroll in QuickBooks? What are the company’s expectation for reporting payroll

Answer 1

Answer:-

QuickBooks is an accounting software package developed and marketed by Intuit. QuickBooks products are geared mainly toward small and medium-sized businesses and offer on-premises accounting applications as well as cloud-based versions that accept business payments, manage and pay bills, and payroll functions.

Payroll for QuickBooks Online automatically fills in the latest federal and many state tax forms for you -just print, sign, and mail. For state forms, we do not yet support, easily use the State Tax Summary report to fill out the state form. Payroll for QuickBooks Online also helps keep track of when tax forms are due and remind you to file them on time. With Payroll for QuickBooks Online, federal and state payroll taxes are instantly calculated. Conveniently pay federal and select state taxes electronically with E-Pay. Plus, receive helpful email reminders so your taxes and forms are always on time.

The manual payroll system is an inexpensive method of performing the payroll process. Manual payroll means that you, or another employee within your company, calculate the payroll each pay period entirely on paper. You will need to calculate all earning heads and statutory applicable deductions (i.e. ESI, PF, Income Tax, etc.) with no start-up costs. The disadvantage is that whatever you save on start-up costs will probably be eaten up by the amount of time it takes to process payroll. In addition, it’s very easy to make mistakes when processing payroll manually, and the penalty for mistakes especially mistakes in calculating statutory and can be very costly.

The manual payroll system is an inexpensive method of performing the payroll process. Manual payroll means another employee within your company, calculate the payroll each pay period entirely on paper. The disadvantage is that whatever you save on start-up costs will probably be eaten up by the amount of time it takes to process payroll. It is very easy to make mistakes when processing payroll manually.

Though the Manual payroll system is inexpensive, Its a really time-consuming and inefficient method. The payroll manager has to calculate each and every employee's pay inclusive of leave and attendance, PF and other wages, deductions, and taxes. This will lead to a lot of payroll errors. Costly payroll mistakes can ruin your business. More than anything, payroll errors can damage your firm.

common Payroll Errors

• Late tax payments
• Tax form errors
• Submitting wrong payroll tax amount
• Misclassifying employees
• Incorrect employee details
• Incorrect employee time tracking
• Depositing and reporting employment taxes incorrectly
• Improper payroll record management
• Late payroll processing

Online Payroll is a stand-alone product that you can use alone or with QuickBooks Online. Online Payroll offers free direct deposit and makes automatic tax calculations. With Online Payroll, you can automatically fill in tax forms, including federal and state forms. In the case of an Online payroll framework, many organizations offer PC programming that will help you in preparing payroll. You will need to input information for each employee when he is hired but after that, the software will calculate payroll taxes and other deduction automatically. The advantages of this type of payroll system are fewer potential mistakes and less time spent processing payroll. In addition, employees can be trained to run the program more easily so you won’t need to depend on just one person to process payroll.

Main difference’s between computerized and manual payroll system is:

1) Speed

2) Backup

3) Cost.

The company’s expectation for reporting payroll

1. Data is available on a real-time basis.

2. Reports can be generated within minutes from the system by those having access to it.

3. Analytic data can be generated immediately

4. Accuracy, Security, Compliance based, Cost-effective, environment friendly is also expected.

QuickBooks, long known for providing high-quality accounting software, offers three full-service payroll plans. The cheapest is pretty similar to Gusto; it starts at $45 a month and includes automatic payroll runs, health care options for your employees, and next-day direct deposit. QuickBooks’ best feature is its ease of use—the interface requires next to no learning curve, and the mobile app makes on-the-go payroll easier.

A word to the wise, though: QuickBooks Payroll includes a no-tax-penalty guarantee with only its most expensive plan. Even though QuickBooks pays taxes on your behalf with every plan, the company won’t accept responsibility for any filing errors unless you’re paying a ridiculously high $125 a month. We can’t think of any other payroll software that requires such a high fee for such a reasonable, industry-standard guarantee.