Last Updated on October 15, 2024
After a recent announcement from Inuit about increasing the prices of their Payroll subscription, many of you might be wondering if there is a way you can use QuickBooks Payroll features without subscribing to Intuit’s® Payroll Service, and the answer is a big yes. All you need to do is to activate manual payroll in the QB Desktop application. In this article, you will find an easy method to record your payroll transactions manually and set up manual payroll in QuickBooks Desktop. If you are already a subscriber to the service, then activating the manual payroll feature in QuickBooks will not reverse it.
Setting up manual payroll in QuickBooks is a fairly simple process. You can undertake the steps below to complete the setup; however, if you don’t want to set up payroll yourself or are facing issues, you might need assistance. Contact our QuickBooks experts at 1.855.738.2784 to get immediate help in setting up manual payroll and overcoming the issues promptly.
Why Do You Need to Set Up Manual Payroll in QuickBooks Desktop?
Manual payroll in QuickBooks can be used for various reasons, which include –
- Setting up manual payroll in QB can be more affordable than other methods.
- It can be an efficient option to maintain payroll for businesses with small staff.
- You can use manual payroll to do job costing in QuickBooks Desktop without dealing with long and time-consuming journal entries.
- Using manual payroll, you can have direct oversight over your timesheets and calculations.
- It’s easy to start and make adjustments in payroll using a manual setup.
Steps to Set up Manual Payroll in the QuickBooks Application
You can perform the detailed steps mentioned below to Set Up Manual Payroll in QuickBooks Desktop –
- Open the QuickBooks Desktop application, and under the Edit tab, click Preferences.
- From the left side panel, select Payroll and Employees and click the Company Preferences tab, and make sure that the Full Payroll option is check marked under the QuickBooks Desktop Payroll Features section.
- Now, click the Help tab and select QuickBooks Desktop Help or press F1 on your keyboard. Under the Help window, type Manual Payroll in the search box and press the Enter key on your keyboard, or click the search button.
- From the help topics, click Calculate payroll manually ( without a subscription to QuickBooks Payroll ).
- Now click Manual Payroll Calculations to set your company file to use manual payroll calculations settings.
- For confirmation, now click Set My Company File to use manual calculations.
- Click OK on the QuickBooks Desktop Information popup window.
(IMPORTANT) QuickBooks delivers this popup message to notify users about their active payroll subscription, as you need to contact our Payroll Support to cancel any active subscription to avoid any further payroll subscription charges from Intuit®. Make sure to update the payroll tax tables before following the steps mentioned in the article. - Now Restart QuickBooks application, and under the Employees section on the home screen, you can see new options to manage your employee’s payroll.
- Click Pay Employees under the Employees tab to add employees and manually set up their payroll.
Once done, you will have a Set Up Manual Payroll in QuickBooks Desktop and be ready to perform the operations.
Steps to Perform If Manual Payroll Option Isn’t Available
Sometimes, you might face issues while setting up manual payroll in QB. If you can’t see the manual payroll option or the button is grayed out, perform the following troubleshooting steps –
Step 1 – Update QuickBooks and the Payroll Tax Tables
Firstly, you must ensure your QuickBooks and payroll tax tables are updated. Download and install the latest QuickBooks Desktop updates, then download the tax table updates as follows –
- Open QBDT, move to the Employees menu and select the Get Payroll Updates option.
- Then, select Download Entire Update, click Update, and wait for the informational window to appear.
After the update is complete, rerun QuickBooks and check if you can set up manual payroll. If the option is still unavailable, move to the next step.
Step 2 – Disable Your Internet Connection
You can perform a counter-intuitive step by disabling the internet connection before searching for manual payroll as follows –
- Disable the Internet connection on your computer and open QB Desktop’s Help menu.
- Search for “manual payroll“; it will show the local (not Internet) copy of the “Calculate payroll taxes manually” article, which includes the “manual payroll calculations setting” link, which links to an “Are you sure?” Help page.
- You will see a QBP Desktop message that Manual Payroll has been enabled, then go to the Edit tab.
- Select Preferences, click Payroll, select Company, and you’ll see the (unclickable) checkbox available.
If you still can’t see the option available, move to the next troubleshooting step.
Step 3 – Remove the Payroll Service Key from the File
You can try removing the payroll service key to ensure the manual payroll option is available. The service key is likely preventing you from switching to QuickBooks Manual Payroll.
- Backup your company file first, then go to the Employees menu.
- Go to My Payroll Service, select Manage Service Key, and highlight your payroll subscription.
- Click Remove or press ALT + 0 (zero), and proceed with Yes to confirm.
After removing, check the Preferences again to ensure the Manual payroll option is available.
Conclusion
We hope this detailed guide helps you successfully set up manual payroll in QuickBooks Desktop. However, if these steps aren’t helping and you face issues while performing the setup process, you can contact our QB support team at 1.855.738.2784. Our experts will help you with the process and resolve other payroll-related matters.
FAQs
What are some common challenges with QB manual payroll?
Although maintaining manual payroll comes with many benefits, it also has some challenges as it is a time-consuming and laborious process. Manual payroll can lead to a higher risk of computing errors, and it lacks legal compliance support.
How do I enter a manual payroll paycheck in QuickBooks?
You can enter a manual payroll check in QuickBooks by implementing the following steps:
– Select Payroll & Employees, then go to the Company Preferences tab and select QuickBooks Payroll Features.
– Select the Full Payroll and Manual Payroll checkboxes, then in the Get Payday peace of mind window, click Next.
– Finally, select Activate in the confirmation screen and click OK.
Can I do manual payroll in QuickBooks Online?
In QuickBooks Online, the ability to do manual payroll is unavailable. QuickBooks Payroll is a separate service that provides payroll processing features, including recording and printing payroll checks, managing payroll tasks, calculating payroll taxes, and issuing paychecks within QuickBooks Online.
However, you can track your payroll paychecks manually as journal entries in the following manner:
– Click the Gear icon, select Chart of Accounts, and click the New button.
– In the Account window, select the Account and Detail Type, enter the Name and Description, and hit Save and Close.
What are the steps to Set Up Manual Payroll in QuickBooks?
You can manually do payroll in QuickBooks in the following manner:
– Gather your tax information and have your employees fill out the TFN declaration form.
– Determine a payroll calendar, calculate gross pay, and withhold income taxes.
– Now, pay payroll taxes, then file and report your payroll.
– Lastly, keep well-maintained payroll records that are organized and accurate.
Edward Martin is a Technical Content Writer for our leading Accounting firm. He has over 10 years of experience in QuickBooks and Xero. He has also worked with Sage, FreshBooks, and many other software platforms. Edward’s passion for clarity, accuracy, and innovation is evident in his writing. He is well versed in how to simplify complex technical concepts and turn them into easy-to-understand content for our readers.