QuickBooks Desktop Payroll to QuickBooks Online Payroll [QBO]
QuickBooks Online Payroll has started to create a niche market for itself in the hearts of the QuickBooks users since the time of its inception. The biggest proof of this is that many business owners, freelance accountants, and bookkeepers have opted to transfer all the details, documents, and payroll information to QuickBooks Online.
This transformation has resulted due to the ease of working on the QuickBooks Online Payroll. The interface and user friendliness of the QuickBooks Online software are the same as the Desktop one, if not better.
The benefit of QuickBooks Online Payroll over QB Desktop
- Full Accessibility with login id and password
- Anywhere and anytime access to software from any device.
- Prompt synchronization with other applications and programs.
- Real-time completion and updating of the company file.
Things to be considered during conversion of Payroll Data from QB Desktop to QB online
The problem, however, occurs when the user is trying to transfer all the required data from the desktop version of QuickBooks to the online version. The issue is that the user is not aware of what is imperative and what can be left behind. He either transfers all the details or leaves behind some essential data. For this, he can get in touch with any of the QuickBooks Payroll tech helpdesks for prompt support.
The information centers on the proper management of payroll in the online software. QuickBooks online software eases up the process of filling, reviewing, and filing the finished W-4 form of every employee along with typing in the payroll data for the whole year and calculating the total of all the four quarters correctly. With this software in hand, users can schedule payments and rates, and collect and store tax details including FUTA in a systematic manner that can be updated in time with full effectiveness and efficiency.
Convert the Payroll Data for migration
Now the question comes is how the data of desktop payroll be converted to QuickBooks Online payroll. The most basic level where this conversion of data occurs is employees and transactions including that of payroll that does not consist of detailed information on the payroll.
- Payroll accounts along with transactions are needed to be converted to maintain proper balance in the book of accounts. However, the basic details like the breakdown of each item in payroll or YTD employee number do not have to be converted and transferred.
- Liability payments made as well as the paychecks created are treated as regular and normal checks.
- Account affecting entries like opening balance transactions and adjustment transactions along with refunds of the liability is treated as more of a journal entry.
- Employees’ general and basic details are converted and transferred, however, payroll details are left behind.
Migrate the data to Quickbooks online
Once the data needed is converted the user can swiftly sign up with QuickBooks Online Payroll. They might be asked to subscribe payroll package which could cost a little extra.
Once the conversion has been finished the user will need to interview payroll setup to structure items along with deductions set up for each employee and type in YTD data. This will result in users being perfectly ready to create and issue paychecks as well as maintain payroll through QuickBooks online software.
While setting up of payroll process, users will be asked if they have paid employees in the current year. For this when the user selects the ‘Yes’ option they will be asked to enter the YTD data of every employee and also any previous payments liable are reported as well.
The process of entering the YTD data of employees is illustrated below:
- Proceed to the Employees tab from the menu bar on the first screen which is the dashboard, of the software.
- Select Complete Payroll Setup from the right side of the screen in the top section.
- Provide the information asked revolving around the nature and other details of the business.
- More information on payroll will also be asked for such as
- Has the employee been paid in the current financial year?
- When would the user prefer to run their first payroll with QuickBooks online software?
- Redirection to a new screen consisting of all the employees of the business will occur. Herein the employees who are missing some vital details will be marked. To edit and add the information, the user will have to click on the name of the employee and fill in the required field.
- The details may range from basic information like contact number or address to payroll-centric data like holdings of the employee, deductions, pay rate and schedules, etc.
- The next step is to provide conclusive tax details asked by local, state, or federal governments. It is imperative to ensure all the data provided is authentic and reliable to avoid any kind of penalty in the future.
- Complete all the details of the old payroll and review the ones already finished by selecting the pay dates.
- Once step 7th is processed, the user can either run payroll by selecting the ‘Run Payroll Now’ button of the popup window or continue to the 8th step by clicking on Run Payroll Later tab.
- Now that the process is complete, the user can run his payroll setup by clicking on the Employee tab in the dashboard and then selecting Run Payroll.