QUICKBOOKS ONLINE CERTIFICATION COURSE. Supplemental Guide. Module 6: Payroll and Other Transactions

Transcription

1 QUICKBOOKS ONLINE CERTIFICATION COURSE Supplemental Guide Module 6: Payroll and Other Transactions

2 Copyright Copyright 2017 Intuit, Inc. All rights reserved. Intuit, Inc Headquarters Drive Plano, TX Trademarks 2017 Intuit, Inc. All rights reserved. Intuit, the Intuit logo, Intuit ProLine, Lacerte, ProAdvisor, ProSeries and QuickBooks, among others, are trademarks or registered trademarks of Intuit, Inc. in the United States and other countries. Other parties marks are the property of their respective owners. Notice to Readers The publications distributed by Intuit, Inc. are intended to assist accounting professionals in their practices by providing current and accurate information. However, no assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a client s particular situation. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit, Inc. does not render any accounting, legal or other professional advice, nor does it have any responsibility for updating or revising any information presented herein. Intuit, Inc. cannot warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.

3 Table of Contents Table of Contents About the Author... 2 Supplemental Guide Overview... 3 Purpose of this Guide... 3 Learning Objectives... 4 Training at a Glance Table... 5 QuickBooks Accountant Test Drive... 6 QuickBooks Changes... 7 Topic 1: Other Transaction Concepts... 8 Recognize Alternative Entry Points to Enter Other Transactions... 8 Define Common QuickBooks Concepts and Terms Related to Recording Other Transactions... 9 Topic 2: Payroll Offerings Identify the Payroll Offerings that Integrate with QuickBooks Online Identify the Steps to Set Up QuickBooks Online Payroll Identify Common Payroll Reports in QuickBooks Online Topic 3: Record Other Transactions Identify Additional Transactions Initiated Using the Quick Create Menu Guide Conclusion Module 6: Payroll and Other Transactions 1

4 About the Author About the Author Laura Redmond Redmond Accounting Inc. Aero Workflow Laura Redmond is a financial controller and IT manager turned cloud accounting advocate and app designer. She is a QuickBooks Online power user, Advanced Certified QuickBooks ProAdvisor, member of the Intuit Trainer/Writer Network, and co-author of Intuit s QuickBooks Online training and certification courses for ProAdvisors. Laura has been awarded Top 100 ProAdvisor and Leading QuickBooks Online Practice. Laura runs Redmond Accounting Inc., a boutique cloud accounting and consulting firm selected by Intuit as a Top 20 Firm of the Future. Their service delivery is centered solely on QuickBooks Online and its eco-system of apps. Laura co-created the AERO Workflow app used by accounting firms to manage service delivery by staff performing recurring tasks for multiple clients. The Aero Library includes step-by-step instructions and procedures for many of today s most popular apps in the QuickBooks Online eco-system. Module 6: Payroll and Other Transactions 2

5 Overview Supplemental Guide Overview PURPOSE OF THIS GUIDE From the recorded session you learned about payroll options available in QuickBooks Online and these services ability to run payroll, pay taxes and file forms. You also learned how to record other transactions in QuickBooks Online. This set of topics will guide you through practice exercises to select payroll options and record other financial activity in QuickBooks Online. Each of the step-by-step activities presented in this handbook is intended to help you: Complete payroll-related activities Complete other transactions Module 6: Payroll and Other Transactions 3

6 Overview LEARNING OBJECTIVES In this module you will complete the following hands-on activities related to the learning objectives: Recognize alternative entry points to enter other transactions Define common QuickBooks concepts and terms related to recording other transactions Identify the payroll offerings that integrate with QuickBooks Online Identify the steps to set up QuickBooks Online Payroll Identify common payroll reports in QuickBooks Online Identify additional transactions initiated using the Quick Create menu Module 6: Payroll and Other Transactions 4

7 Overview TRAINING AT A GLANCE TABLE Use this as a guide to select the specific training you want to cover. TOPICS STEP-BY-STEP WORKFLOWS LEARNING OBJECTIVE 1. OTHER TRANSACTION CONCEPTS 2. PAYROLL OFFERINGS 3. RECORD OTHER TRANSACTIONS Recording Financial Activity Posting vs. Non-posting Transactions Payroll Options in QuickBooks Online QuickBooks Online Payroll QuickBooks Online Full Service Payroll Intuit Online Payroll QuickBooks Online Payroll Reports Timesheets Billable Time Deposits Transfers Journal Entry Statements Inventory Adjustments Recognize alternative entry points to enter other transactions Define common QuickBooks concepts and terms related to recording other transactions Identify the payroll offerings that integrate with QuickBooks Online Identify the steps to set up QuickBooks Online Payroll Identify common payroll reports in QuickBooks Online Identify additional transactions initiated using the Quick Create menu Module 6: Payroll and Other Transactions 5

8 Overview QUICKBOOKS ACCOUNTANT TEST DRIVE Exercises contained in this handbook can be completed using a QuickBooks Accountant test drive file. The test drive uses a sample company file called Craig s Design & Landscaping Services. It can be accessed through the following link: Craig's Design & Landscaping You don t have to create an account or sign in to access the test drive file, just complete the security validation and click Continue. If you don t see the Accountant Toolbox when logging in through this URL, log into qbo.intuit.com with your Intuit ID. Click the name of a QuickBooks Online Accountant firm. Navigate to the gear icon, then click Sample Company. This is what you are looking for in the sample company. This test drive is designed for you to explore and try out new things without worrying that you will break something or make a mistake. It is not designed to retain any changes you make. Once you close this QuickBooks Online test drive company it is completely refreshed, so please remember to allow sufficient time to complete each activity. Don t worry if you have to close the test drive before you are finished, you can always begin again. NOTE: The test drive uses QuickBooks Accountant. It contains some features that are not available in QuickBooks Online Simple Start, Essentials or Plus. In addition, some features (such as in-product Help) are not enabled inside this test drive file. This is subject to change. NOTE: There is also a test drive that you can share with your clients that doesn t include accountantspecific features. It can be accessed through the following link: Module 6: Payroll and Other Transactions 6

9 Overview QUICKBOOKS CHANGES The QuickBooks Online and QuickBooks Online Accountant teams work hard at improving the products throughout the year. Because QuickBooks Online is subscription based, there are enhancements and new features released frequently. Because of this, the screen shots in this guide may look a little different from the product. Some menu items may move or some new features might have been added. The training is still relevant! Use the following resources to keep up with the latest features and improvements. In-product notifications Module 6: Payroll and Other Transactions 7

10 Topic 1: Other Transaction Concepts Topic 1: Other Transaction Concepts RECOGNIZE ALTERNATIVE ENTRY POINTS TO ENTER OTHER TRANSACTIONS There are several ways to record financial activity for other transactions not related to customers and vendors. Here are some of the places to do that: The Quick Create menu in the top navigation bar at the plus icon (+) is a quick way to add any new transaction The condensed view of this menu shows only the four most frequently used transaction types. Click the Show more link to expand it and see all transaction types, grouped by their relation to customers, vendors, employees or other. This is a sticky menu, so your choice of condensed or expanded view will be remembered next time Transactions related to timesheets are found in the Employees column Transactions not related to customers, vendors and employees are found in the Other column Select the type of transaction you want to add and a new form slides down over the screen Module 6: Payroll and Other Transactions 8

11 Topic 1: Other Transaction Concepts Employee Center From the left navigation bar, you will find the Employee Center where you can run payroll Copy Copying a transaction is another easy way to enter activity into QuickBooks, especially if there is a lot of similar detail. From Journal Entries and Weekly Timesheets, click Copy on the More menu to make a duplicate. Change the necessary information and click Save. DEFINE COMMON QUICKBOOKS CONCEPTS AND TERMS RELATED TO RECORDING OTHER TRANSACTIONS Posting transactions record debits and credits to the general ledger. For example, a transfer posts as a credit to the account specified as From and a debit to the account specified as To. Posting transactions in QuickBooks Online include: Deposit Transfer Journal Entry Inventory Qty Adjust Non-posting transactions, such as a timesheet, allow you to store detailed information, mark as billable to a customer to later pull into an invoice but the timesheet does not post a debit or credit to the general ledger. Non-posting transactions in QuickBooks Online include: Single Time Activity Weekly Timesheet Statement Module 6: Payroll and Other Transactions 9

12 Topic 2: Payroll Offerings Topic 2: Payroll Offerings IDENTIFY THE PAYROLL OFFERINGS THAT INTEGRATE WITH QUICKBOOKS ONLINE QuickBooks Online offers two integrated payroll options. To sign a client up for QuickBooks Payroll, navigate to the Employees tab on QuickBooks Online s left navigation bar and click the button to Turn on Payroll at the top right of the Employee center. Choose which option you prefer: I want to do payroll myself QuickBooks Online Payroll (QBOP) I want payroll done for me QuickBooks Full Service Payroll (QBFSP) NOTE: You can also sign up a business for either of these payroll options in QuickBooks Online Accountant when you initially add a client to create their QuickBooks Online subscription. This allows you to bundle their payroll subscription with their QuickBooks subscription and save 50% if you add them to your wholesale billing account. Module 6: Payroll and Other Transactions 10

13 Topic 2: Payroll Offerings IDENTIFY THE STEPS TO SET UP QUICKBOOKS ONLINE PAYROLL QuickBooks Online Payroll QuickBooks Online Payroll is the do-it-yourself option. You ll want to determine with your client which of you will be responsible for setup, running payroll, remitting taxes and filing forms. Setup Use this checklist to gather the necessary information to complete setup at In QuickBooks Online s Employee Center, add employees including name, gender, date of birth, W-4 info, pay schedule, pay types, pay rate, deductions and payment method. In QuickBooks Online s Payroll Tax Center, set up payroll tax by entering general information such as legal filing name and address, payroll start date, first hire date. Then configure federal and state payroll tax information including tax ID number and deposit schedule. Next, activate E-pay and E-file services for direct deposit, electronic payroll tax remittance and form filing. In QuickBooks Online s Payroll Settings, map wages and liabilities appropriately to the Chart of Accounts so paychecks and payroll tax payments are posted properly to the general ledger. Payroll From QuickBooks Employee Center, click Run payroll. Verify the pay period and payday dates. Enter regular, overtime, vacation and any other hours and deductions for employees for the pay period. QuickBooks handles the calculations. Then preview and submit payroll. Next you will have the option to print and sign live paychecks or print/ direct deposit paystubs. Direct deposit paychecks must be submitted at least two business days prior to the paycheck date. Module 6: Payroll and Other Transactions 11

14 Topic 2: Payroll Offerings Taxes & Forms The client (or accountant) is responsible for making all required tax deposits. The client (or accountant) must review and submit payroll tax returns that are prepared in Payroll and are responsible for filing the returns timely. Intuit does not handle any tax notices and does not assume responsibility. However, you can opt in for notifications and Intuit will send you a reminder when payroll, payroll tax deposits and payroll tax forms are coming due. Module 6: Payroll and Other Transactions 12

15 Topic 2: Payroll Offerings QuickBooks Online Full Service Payroll QuickBooks Online Full Service Payroll is the do-it-for-me option; a complete payroll service with a team of US-based payroll experts to take care of payroll for you. QuickBooks Online Full Service Payroll guarantees 100% accuracy, so your payroll setup, payday and taxes are done right. If there is ever an issue, Intuit offers full tax representation to take care of it for you. Setup Answer simple questions about your business, connect to your bank to enable free direct deposit and electronic payroll tax payment, add information about employees, and authorize Intuit to remit payroll taxes on your behalf. Intuit will handle the rest of the work to make sure your payroll account is set up correctly. If you are switching from another payroll provider, Intuit will transfer all the data for you. Payroll From QuickBooks Employee Center, click Run payroll. Verify the pay period and payday dates. Enter regular, overtime, vacation and any other hours and deductions for employees for the pay period. QuickBooks handles the calculations. Then preview and submit payroll. Next you will have the option to print and sign live paychecks or print/ direct deposit paystubs. Direct deposit paychecks must be submitted at least two business days prior to the paycheck date. Taxes and Forms QuickBooks calculates federal and state taxes for you each time you process paychecks and remits the payments to the proper agencies when they are due. Intuit files your quarterly and annual tax forms with federal, state and local agencies. They also file W2s and mail them directly to your employees. To see tax payments or forms filed for you, go to Payroll Tax Center for details on withdrawal date, amount and filing period. Intuit Online Payroll Intuit also offers two online payroll options that are accessed outside of QuickBooks Online: Intuit Online Payroll for Accounting Professionals (IOP4A) and Intuit Full Service Payroll (IFSP). These allow you to process payroll outside of QuickBooks Online then export it to QuickBooks Online s general ledger without logging in to QuickBooks Online. Module 6: Payroll and Other Transactions 13

16 Topic 2: Payroll Offerings IDENTIFY COMMON PAYROLL REPORTS IN QUICKBOOKS ONLINE For businesses using QuickBooks Online Payroll or QuickBooks Online Full Service Payroll, payroll reports can be found in the Report Center. Here are three common payroll reports you can use to review payroll: Payroll Summary Report The Payroll Summary Report displays information about a single payroll or date range. To change the dates click Date Range. You can choose from many options such as last month, this week or by tax filing quarter. You can also filter by employees. To share, print or export your report to Microsoft Excel, click the drop-down menu next to the Share button. Module 6: Payroll and Other Transactions 14

17 Topic 2: Payroll Offerings Payroll Details Report The Payroll Details Report shows a breakdown of both the employee and employer share of taxes as well as any deductions from the employee s gross wages. You can change the date range and filter by employees here too. NOTE: This is similar to the Payroll Summary Report in QuickBooks Desktop Payroll. There is also an option to customize this report to show Summary by Employee. Module 6: Payroll and Other Transactions 15

18 Topic 2: Payroll Offerings Payroll Tax Liability Report The Payroll Tax Liability Report shows the amount of taxes withheld, paid and owed to each taxing authority. You can filter this report by Date Range. These payroll reports can be printed, exported to Excel and shared using the drop-down button in the upper right. Module 6: Payroll and Other Transactions 16

19 Topic 3: Recording Other Transactions Topic 3: Record Other Transactions IDENTIFY ADDITIONAL TRANSACTIONS INITIATED USING THE QUICK CREATE MENU There are other types of transactions that can be accessed from the Quick Create menu. Timesheets Time tracking is only supported in QuickBooks Online Plus. Admin and regular users have access to view, add and edit timesheets for all users. QuickBooks Online Plus allows unlimited time trackingonly users. Time tracking-only users can only see their timesheets when they log in to QuickBooks; they cannot navigate to other screens. These employees/contractors can log in and enter the details of the work they ve performed. Time is tracked using the Single Time Activity or the Weekly Timesheet function. Timesheets are non-posting transactions that capture hours worked. Time tracking entries can be viewed on Time Tracking reports. Timesheets can be used to calculate paychecks. Timesheets can be used even if you are not signed up for QuickBooks Online Payroll. Billable Time Timesheets can be used to create billable time charges for customers. Configure the advanced Company Settings for Time Tracking to activate using Service fields on timesheets and make singletime activity billable to a customer. Step-by-Step: Enter Billable Time 1. Select Quick Create (+) at the top of the QuickBooks Online window. 2. If necessary, select Show More. 3. Under Employees, select Single Time Activity. 4. Enter the name of the employee or vendor whose time is being tracked. 5. Enter the date the work was performed. 6. If the employee was providing a service, enter the customer for whom the work was performed. Module 6: Payroll and Other Transactions 17

20 Topic 3: Recording Other Transactions 7. Enter the service performed. 8. Check the box to mark it Billable if the hours should be pulled onto an invoice. 9. Adjust the billing rate if needed. 10. Enter the Time tracked as three and a half hours, either in HH:MM format (3:30) or decimal format (3.5). If you enter a decimal, QuickBooks will convert it to hours and minutes. Alternately, check the box next to Enter Start & End Times then fill in the fields for Start Time and End Time. 11. Enter a description of the work done. Billable time tracking descriptions are not internal notes this will pull onto the invoice, but you may change the description once pulled onto the invoice. 12. Select Save and close, or Save and new to enter additional time entries. Module 6: Payroll and Other Transactions 18

21 Topic 3: Recording Other Transactions Step by Step: Fill out a Weekly Timesheet 1. Select Quick Create (+) at the top of the QuickBooks Online window. 2. If necessary, select Show More. 3. Under Employees, select Weekly Timesheet. 4. Enter the name of the employee or vendor whose time is being tracked. 5. Enter the work week for which the time is being tracked (the preferred first day of a work week for this company is determined in the advanced Company Settings for Time Tracking). 6. In each row of the Weekly Timesheet grid, enter the customer for whom this individual s time is being tracked, the service being rendered during this time, and the time tracked day by day during the week, either in HH:MM format (3:30) or decimal format (3.5). As needed for invoicing purposes, enter the billing rate and taxable status. 7. Select Save and close, or click the drop-down box next to Save and close and select Save and new. Module 6: Payroll and Other Transactions 19

22 Topic 3: Recording Other Transactions Deposits In Module 4 we learned about recording customer payments and sales receipts to the Undeposited Funds account. Use the upper half of the Bank Deposit screen to select undeposited payments to group them together into one deposit amount to match the bank statement. Use the lower half of the screen to add new deposits for activity not related to undeposited funds, such as: Companies that don t record income using sales transactions (invoices or sales receipts) and want to record deposits directly to income accounts Companies that receive a refund from a vendor and want to record it directly against the expense account or to a Refunds Received income account When an employee reimburses the company, use this screen to record it against the Employee Loan receivable account When you receive a tax refund, use this screen to record it to Tax Refunds account Module 6: Payroll and Other Transactions 20

23 Topic 3: Recording Other Transactions Step by Step: Make a Bank Deposit 1. Select Quick Create (+) at the top of the QuickBooks Online window. 2. If necessary, select Show More. 3. Under Other select Bank Deposit. 4. Select which bank account you are using for the deposit. 5. Fill in the date. 6. If there are any monies in Undeposited Funds, they will show up on the top part of the screen. 7. Select Existing Payments by checking the box for each payment that is part of the deposit. 8. In the Add New Deposits area, add any other payments received, typically non- sales-related transactions. Enter the name of the Entity the money was received from, enter the appropriate account to credit, enter a description, payment method, reference number and amount. 9. If you are taking cash back from the deposit, click in the posting account, i.e., Petty Cash or Owner s Draw, and the amount of cash be taken. 10. Click Save and close or Save and new. You can also print a deposit slip and summary using preprinted deposit slips or a summary only that you can print on plain paper. Module 6: Payroll and Other Transactions 21

24 Topic 3: Recording Other Transactions Transfers Companies often transfer funds between company-owned bank accounts. Perhaps the company is moving funds from the general operating account to the checking account used for payroll, or from a savings account to the checking account. Perhaps the company transferred funds from the company checking account to pay down the company credit card. The transfer screen is used to move funds between two balance sheet accounts. The transfer screen is not used to record income or expense. There are no customers, vendors, employees or Products and Services items involved. These fields are not available on the transfer screen. You don t use the Transfer feature to transfer from your bank account to your vendor s bank account. Navigate to the Quick Create menu to find the Transfer screen. Specify the accounts you are transferring from and to, enter the amount and the date. Add a memo and attach supporting documentation then save the transfer. Module 6: Payroll and Other Transactions 22

25 Topic 3: Recording Other Transactions Step by Step: Transfer Funds 1. Select Quick Create (+) at the top of the QuickBooks Online window. 2. If necessary, select Show More. 3. Under Other select Transfer. 4. Select the account from which you are transferring funds. 5. Select the account to which you are transferring funds. 6. Fill in the date. 7. Enter a memo if desired. 8. Click Save and close or Save and new. Module 6: Payroll and Other Transactions 23

26 Topic 3: Recording Other Transactions Journal Entry Journal entries are a way to post debits and credits to accounts in the general ledger. Using sales and purchase forms to record income and expense is the preferred method, but using a journal entry is another way to adjust account balances. Some things to know about journal entries: Total debits must equal total credits to save the journal entry You cannot use Products and Services items in a journal entry When posting to Accounts Receivable you must specify a customer When posting to Accounts Payable you must specify a vendor You may use multiple AR and/or AP accounts on the same journal entry (a feature not available in QuickBooks Desktop) There is no ability to mark an amount as billable to a customer Module 6: Payroll and Other Transactions 24

27 Topic 3: Recording Other Transactions Step by Step: Record a Journal Entry 1. Select Quick Create (+) at the top of the QuickBooks Online window. 2. Under Other, select Journal Entry. 3. Enter a date. 4. Enter or accept the Journal Entry reference number. 5. On the first row, select an account and enter a debit amount. 6. Enter a description if required. 7. On the next row, select another account and enter a credit amount. 8. Enter a description if required. 9. Continue until you are done with the journal entry. Total debits must equal total credits. 10. Select Save and new or Save and close. Module 6: Payroll and Other Transactions 25

28 Topic 3: Recording Other Transactions Statements Statements are non-posting notices you send to customers. Step-by-Step: Create a Statement 1. Select the type of statement you want, Balance Forward, Open Item or Transaction statement. 2. Enter the statement date. 3. Select the customer balance status: all, open or overdue. 4. If you picked the Balance Forward or Transaction statement, then enter the start and end date range for the period you want to cover. 5. If you changed the statement type or criteria, click Apply to update the balance and number of customers. 6. Preview the statements. Uncheck any customers to whom you do not want to send a statement. 7. Save and send. Notice that you did not select individual customers. When you create statements from the Quick Create menu s Statement screen, you create statements for all customers who meet the criteria. Module 6: Payroll and Other Transactions 26

29 Topic 3: Recording Other Transactions However, you are given the option to deselect customers to whom you do not want to send a statement. This statement processing method is useful if you have a large number of customers to whom you send statements regularly. To target a particular group of customers or an individual customer for statements, you could use the Customer Center. Click the money bar s Open Invoices filter to show open balances due. Individually select each customer and use the batch actions button to create statements. Module 6: Payroll and Other Transactions 27

30 Topic 3: Recording Other Transactions Inventory Adjustments QuickBooks makes it easy to adjust the quantity of inventory items on hand. The adjustment affects the Inventory Asset account to reflect the value of the updated quantity of product on hand with an offsetting entry to the account you select. Step-by-Step: Create an Inventory Adjustment 1. From the Quick Create menu, in the Other column, select Inventory Qty Adjustment. 2. Enter an adjustment date. 3. Select the account you want to record the inventory adjustment to, such as the default Inventory Shrinkage Cost of Goods Sold account. 4. Enter a reference number (optional). 5. Add a memo (optional). 6. Select the product you want to adjust and enter the current quantity on hand. 7. Repeat step 6 for each product you want to adjust the quantity on hand. 8. Save and close. Module 6: Payroll and Other Transactions 28

31 Topic 3: Recording Other Transactions You can also adjust the quantity on hand of an inventory item from the Products and Services list by selecting Adjust quantity from the item s Action menu column. And you can adjust the quantity of multiple items at a time on the Products and Services list by checking the box to select each of the items you want to adjust then select Batch actions Adjust quantity. Module 6: Payroll and Other Transactions 29

32 Guide Conclusion Guide Conclusion You have just completed Module 6: Payroll and Other Transactions. This Supplemental Guide, in tandem with its recorded module, has been provided to help prepare you for the QuickBooks Online Certification Exam. Continue on to the remaining modules and their related guides then proceed to the certification exam. By completing this module, you should be able to: Recognize alternative entry points to enter other transactions Identify the steps to set up QuickBooks Online Payroll Identify common payroll reports in QuickBooks Online Define common QuickBooks concepts and terms related to recording other transactions Identify the payroll offerings that integrate with QuickBooks Online Identify additional transactions initiated using the Quick Create menu Module 6: Payroll and Other Transactions 30