Payroll Setup Interview in QuickBooks



QuickBooks helps you to set up with the payroll settings that are best fit for you. This tutorial gives you an overview of the steps to complete the QuickBooks Payroll Setup interview.

Expected output

You will access the Payroll Setup interview and complete the setup process.


You have an active Intuit payroll subscription.


Payroll setup interview will not be used in case you are using assisted payroll service.

To access the Payroll Setup interview move to Employees> Payroll Setup.

Steps in the Payroll Setup Interview
Step 1:

QuickBooks identifies whether you have issued paychecks or not.


Step 2:

This step is the company setup which involves setting up your company payroll information.


The following information is required:

  • Information regardingCompensation that can be hourly, salary, tips, bonuses
  • Employee benefits information which involves retirement, health insurance, paid time off
  • Other payroll deductions and additions which include wage garnishments, mileage


Step 3:

This step is the Employee Setupwhich involves setting up your employees, including theirpayroll items,W4 information and other benefits that are applicable. Be sure to include all employees that you have paid during this calendar year, whether they still work for you or not.


The following information is required:

  • A W4 for each employee.
  • Information regarding Compensation that can be hourly rate, yearly salary, commission
  • Direct deposit information for each employee (if applicable).
  • Information regardingbenefits (401K, wage garnishment, paid time off)


Step 4:

This step is the taxeswhich involves setting up all your State and Federal Taxes.


The following information is required:

  • State Withholding and Unemployment Tax identification/account numbers. 1 number is used in some states for both state withholding and unemployment taxes others have different account numbers for each type of tax).
  • State Unemployment Tax rate information.


Step 5:

This step is the Year-to-date payrolls which involveentering all of your year-to-date payroll history and tax payments starting in January. If you do not have any payroll history for the year, you can skip this step.


The following information is required:

  • Year-to-date payroll information. Closed quarters requires a quarterly report that shows each employee’s quarterly earnings whereas an open quarter, requiresthe payroll information for each payroll run for each employee.
  • Prior tax and liabilities payments information


Step 6:

Data reviewstep is made of two sub-steps:


  • Review your payroll data

Review your payroll data walks you through your wage and tax data review. It compares your year-to-date entries to your payroll items and tax items. In the case of any errors it generates a report, so that you can correct your year-to-date entries.



    Reconcile your payroll tax forms to your payroll data

Reconcile your payroll tax forms to your payroll data walks you through entering your 941 form and state agency filed forms, then it helps you reconcile the data. If you have errors, you’ll need to correct your entries.


The following information is required:

  • The Federal 941 form for each quarter you have filed for the year
  • The State agency quarterly forms filed for each quarter you have filed for the year


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