QuickBooks

Three Customer Payroll Options in QuickBooks

Written by Carrie Kahn

This article will share knowledge regarding Intuit payroll options so that you can choose the best option for your clients. Running payroll inside of QuickBooks or using a product that imports into QuickBooks is a very cost effective way for your customers to pay their employees and be compliant. Integration reduces errors and saves time easing entries into your customer’s checkbook, making bank reconciliations a breeze.

All the options presented below will allow your client to run their own payroll, print paychecks, or pay their employees and or subcontractors by direct deposit. For both QuickBooks financial products — QuickBooks Online and QuickBooks Desktop — there are two options and the client will have to decide if they want to make their own payroll tax payments as well as payroll tax filings or have Intuit pay their tax payments and file their payroll tax returns for them.

Within the financial products your clients can keep payroll confidential by selecting the proper login user permissions. Keep in mind that there is a third option that is not integrated as it is a standalone payroll solution (see below) but they have the option to import the data into all QuickBooks financial products, including QuickBooks Pro for Mac. This option allows them to pay their subcontractors!Customer Payroll Options

The benefits and limitations will be highlighted for each offering.

Part 1: QuickBooks Online

Simple Start, Essentials, & Plus Integrated Options:

QuickBooks Online has limitations you need to be aware of. Your customer has to make their decision about full service payroll right away because they cannot upgrade from QuickBooks Enhanced to QuickBooks Full Service Payroll later. They cannot track job costing. QuickBooks Desktop versions (Pro, Premier, Enterprise) allows them to do both.

In these two integrated options they run the payroll checks and the difference is who is paying the payroll tax payments and filing the quarterly and annual payroll tax returns.

  1. Do it yourself: Enhanced Payroll (Integrated)
  2. Done for you: QuickBooks Full Service Payroll (Integrated)

QuickBooks Enhanced Payroll is a great choice for businesses that want to process their own payroll, do their own e-file, and e-pay federal and state taxes as well as quarterly and annual payroll tax returns (including year-end processing of W2s). They will have to do their own setup. This is an opportunity for support services. Please note, if they choose Enhanced Payroll, they cannot upgrade to integrated full service payroll later. PRICING: $19.50 base plus $2/EE per month. After 6 months, base fee is $39.

QuickBooks Full Service Payroll (QBFSP) is a great choice for businesses that want to process their own payroll and have their taxes paid as well as their payroll tax returns filed for them. Intuit will e-file and e-pay federal and state taxes as well as quarterly and annual payroll tax returns (including year-end processing of W2s). PRICING: $49.50 base plus $2/EE per month. After 12 months, base fee is $99. Free SETUP included!

Please Note: Your customer’s free SETUP by Intuit will save them large consulting fees usually associated with setting up a payroll from January 1 to current and allows them the flexibility of converting any time of year!

View our matrix to see the different options here.

Part 2: QuickBooks Desktop Software

QuickBooks Pro, Premier, and Enterprise Editions

In these two integrated options your customer will print their own payroll checks or have them direct deposited. It integrates directly into their desktop QuickBooks, allowing them to allocate their hours in service to job costing, multi-level class tracking, and true P/L reporting. The only difference is who is paying the payroll tax payments and filing the quarterly and annual payroll tax returns. These options are not available in QuickBooks Pro for Mac.

  1. Do it yourself: Enhanced Payroll (Integrated)*
  2. Done for you: Assisted Payroll (Integrated)

* QuickBooks Enterprise Gold – comes with Enhanced Payroll subscription, no need to buy separate. Direct deposit is free!

QuickBooks Enhanced Payroll is a great choice for businesses that want to process their own payroll and do their own e-file and e-pay federal and state taxes as well as quarterly and annual payroll tax returns (including year-end processing of W2s). Please note, if they choose Enhanced payroll, they can upgrade to integrated QuickBooks Assisted Payroll later. PRICING: $19.50 base plus $2/EE per month. After 6 months, base fee is $39.

QuickBooks Assisted Payroll is a great choice for businesses that want to process their own payroll and have their taxes paid and reports done for them. Intuit will e-file and e-pay federal and state taxes quarterly as well as file their payroll tax returns (including year-end processing of W2s). PRICING: $79.00 base plus $2/EE per payroll. After 12 months, base fee is $99.

Complete Business Group (CBG) uses QuickBooks Assisted Payroll. Keep in mind that setting up payroll has certain steps that need to be done in order. Be prepared to assist your client with this setup, or partner with another CBG payroll expert to help your customer with the setup. We recommend doing this work in November/December to get it ready for the new year—or not too far into the new year.

View our matrix for the different options here.

Part 3: Payroll Options in Standalone Product–No QuickBooks Necessary

This is the only standalone option that allows your customer to have the flexibility to run payroll only, while having the option of exporting a data file to update your client’s QuickBooks Online and all versions of QuickBooks Desktop, including QuickBooks for MAC. It is the only option that allows your customer to also pay their subcontractors and file 1099s for them. This product cannot do Job costing.

Intuit Full Service Payroll (IFSP) is a great choice for businesses that want to process their own payroll and have their taxes paid and reports done for them. Intuit will e-file and e-pay federal and state taxes as well as quarterly and annual payroll tax returns (including year-end processing of W2s and 1099s). $59.40 base plus $2/EE per month. After 12 months, base fee is $99. Free SETUP included!

Please Note: Your customer’s free SETUP by Intuit will save them large consulting fees usually associated with setting up a payroll from January 1 to current and allows them the flexibility of converting any time of year!

About the author

Carrie Kahn

Complete Business Group helps small businesses purchase the RIGHT QuickBooks product at the lowest price and offers a team of experts to provide high level customer service so that they use QuickBooks® the way it was intended. With the many offerings from online to desktop we understand the benefits and limitations of each option to help you find the right solution. We have a team of certified ProAdvisors located all over the US ready to support you remotely or locally.

Carrie Kahn, CPA, the founder and CEO of Complete Business Group, has been helping small businesses purchase the RIGHT QuickBooks product at the best price and offers a team of experts to provide high level customer service so that they use QuickBooks®the way it was intended.

Carrie has been supporting and selling QuickBooks since Dos V1. She has been an Advanced Certified ProAdvisor since 2002. She joined the Intuit Reseller Program in 2008. In 2015 she launched the Complete Business Partner Program
mentoring ProAdvisors in selecting the best QuickBooks products for their clients at best pricing for their customers. She is very involved in the QuickBooks community providing extensive resources for ABBO Facebook group , Scaling New Heights, School of Bookkeeping, CPA Academy, Intuit’s Firm of the Future, and CBG Blog. Carrie is a lead QuickBooks Author for the Accountex blog. She was named Insightful Accountant’s Top 100 ProAdvisor every year since 2014 and was Insightful Accountant’s 2017 Social Media Resources ProAdvisor. She currently serves on the Intuit Reseller Program Council. CBG has been in the top 10 Intuit Premier Resellers (IRPs) since 2012 and currently is ranked #1 in the East. She is currently serving on the IRP Council. Carrie’s company, CBG was named Partner Program of the year for 2017.

3 Comments

  • Nice job putting it all together Carrie. I could have really used this a month an a half ago! 🙂 The QBO selection is pretty rigid, but I heard that they are testing a pathway for those on enhanced to migrate to full service.

    • Hi Jeff,

      We are live with being able convert QBO Enhanced Payroll to Full Service! There are a couple of minor exceptions to this, but the vast majority we are now able to convert.

  • Great work Carrie on simplifying Intuit’s payroll offerings. I have worked for Intuit for 11 years and specialized in payroll for the past 5 so I understand seeing all of our payroll offerings can be a bit overwhelming at times. All of the offerings are great when they are properly matched with each small businesses unique needs. If you consult with Carrie and her team they’ll ensure you’re in the right product the first time!

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