Choosing the Right QuickBooks Payroll Service

Running payroll inside of QuickBooks or using a product that imports into QuickBooks is a very cost-effective way to pay your employees and be compliant. Integration reduces errors and saves time, easing your entries into your checkbook.

All of the options presented allow you to run your own payroll, print paychecks, or pay with direct deposit. QuickBooks Online (QBO) offers three service options and QuickBooks Desktop (QBDT) offers two. You have to decide if you want to make your own payroll tax payments, as well as payroll tax filings or have Intuit pay your tax payments and file your payroll tax returns for you. Within the financial products, you can keep payroll confidential by selecting the proper login user permissions. Keep in mind there is also a third option that is not integrated as it is a stand-alone payroll solution, but you have the option to import the data into all QuickBooks financial products, including QuickBooks Pro for Mac. There are a lot of choices for payroll, we have created a guided tool to help you decide which Payroll service is the right fit.

The benefits and limitations will be highlighted for each offering.

QUICKBOOKS ONLINE (QBO): Simple Start, Essentials, Plus, & Advanced Integrated Options

QBO updated its payroll lineup in early 2020. All of the integrated payroll services are Full Service, meaning that Intuit will handle tax payments and payroll forms for you. Core offers you the option of handling that task yourself if you prefer.

In the integrated options, you run the payroll checks (there is the option of auto payroll) and there are feature differences between the 3 levels. We have created a course that highlights and walks you through all of the features and options within each service.

• Core Payroll Service – The Basics for Payroll
• Premium Payroll Service – Integrated time tracking, Setup review, and HR center
• Elite Payroll Service – White Glove setup, Tax Penalty Guarantee, HR advisor

Core Payroll

This is a great choice for businesses that need a basic payroll service with the option to do their own e-file and e-pay for federal and state taxes, along with quarterly and annual payroll tax returns including year-end processing of W2s. You can also pay contractors with direct deposit. This payroll product offers a 24-hour direct deposit for both payroll employees and contractors.

Premium Payroll 

Good 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, state taxes, quarterly, and annual payroll tax returns including year-end processing of W2s. Included is T-Sheets Premium time tracking to assist you and your employees tracking their time. This service offers same-day direct deposit.

This payroll product offers a 24-hour direct deposit for both payroll employees and contractors.

You will have to file the 1096 and 1099s at year-end, it will not be done for you.

Elite Payroll

This service includes the most options for all of the services. An included HR advisor for those HR questions that come up, White glove onboarding and 24/7 payroll support, plus a tax penalty guarantee (no matter who caused it). 

PLEASE NOTE: Your free SETUP by Intuit will save you large consulting fees usually associated with setting up payroll from January 1st to current and allows you the flexibility of converting any time of year!

QUICKBOOKS DESKTOP SOFTWARE (QBDT): QuickBooks Pro, Premier, and Enterprise Editions

In these two integrated options, you run the payroll checks. It integrates directly into your desktop QuickBooks allowing you to allocate your hours in service to job costing, multi-level class tracking, and true profit/loss 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.

• Do it yourself – Enhanced Payroll (Integrated)
• Done for you – Assisted Payroll (Integrated)

QuickBooks Enhanced Payroll

For businesses that want to process their own payroll, and do their own e-file and e-pay federal, state taxes, quarterly, and annual payroll tax returns including year-end processing of W2s. Please note, if you choose Enhanced payroll, you CAN upgrade to integrated QuickBooks Assisted Payroll later.

QuickBooks Assisted Payroll

Good for businesses that want to process their own payroll and have their taxes paid and reports are done for them. Intuit will e-file and e-pay federal, state taxes, quarterly as well as their payroll tax returns filed for them including year-end processing of W2s

Keep in mind, setting up payroll has certain steps that need to be done in order. Be prepared for a QuickBooks payroll expert to help you with the setup. We recommend doing this work in November/December to get it ready for the new year, or not too far in the new year.

Payroll Options in Stand-Alone Product – no QuickBooks necessary

This is the only stand-alone option that allows you to have the flexibility to run payroll only, while having the option of exporting a data file to update your QBO, and ALL Versions of QuickBooks Desktop, including QuickBooks for Mac. It is the only option that allows you to also pay your subcontractors and files 1099s for you. This product cannot do Job costing.

Intuit Full Service Payroll (IFSP)

A great choice for businesses that want to process their own payroll and have their taxes paid and reports are done for them. Intuit will e-file and e-pay federal, state taxes, quarterly and annual payroll tax returns including year-end processing of W2s and 1099s. Free SETUP included!

PLEASE NOTE: Your free SETUP by Intuit will save you large consulting fees usually associated with setting up payroll from January 1st to current and allows you the flexibility of converting any time of year!

If all of this is overwhelming, don’t worry. We’ve created a course that walks through each of these options in greater detail. We also have a guided tool to help you decide which Payroll service is the right fit.