If you need to track vehicle mileage, either for tax deduction purpose or billing customers for mileage expenses, QuickBooks provides a way to do it.
First of all, you have to add your vehicles in the Vehicle List:
1. From the Main Menu, select Lists > Customer & Vendor Profile Lists > Vehicle List to open Vehicle List window.
2. Choose Vehicle > New or Ctrl + N to add a new vehicle.
3. Enter vehicle name in the Vehicle field, and required description in the Description field.
Now we are ready to run a payroll by finishing three (3) prerequisite tasks:
1. Set up payroll items used to compensate your employees, such as salary, hourly wages, vacation pay, bonus, commission, advance, WCB, etc.
2. Set up employees for their compensation.
3. Enter historical or year-to-date data for your employees, including benefits and taxes withheld, such as CPP, EI, and income taxes.
Open Payroll Centre by selecting Employees > Payroll Centre.
• If you have not created your payroll schedule:
Click Payroll Schedules to open Payroll Schedule List window > select Payroll Schedule > New or Ctrl + N to open New Payroll Schedule window:
In Part I of Setting Up Employees in QuickBooks, we have discussed how to set a common payroll items from Employee Defaults window.
In this Part II, we will discuss how to create employee records. You can create a new employee by going to the Employee Centre:
• From the Home page, click Employee button, or
• From Main Menu > Employees > Employee Centre, and
select New Employees or Ctrl + N to open New Employee window:
We have discussed in the previous three blogs:
1. How to set up payroll items used to compensate your employees, such as salary, hourly wages, vacation pay, bonus, commission, advance, WCB, etc.
2. How Set up employees for their compensation: using Employee Defaults window in Part I and creating employee record in Part II.
The third step you have to do before running your first payroll is to enter historical or year-to-date (YTD) payroll amount for your employees, including benefits and taxes withheld, such as CPP, EI, and income taxes, unless you are starting to use QuickBooks at the very beginning of the year( i.e. when no accumulation of CPP, EI, & income taxes paid by you and your employees exist).
When there are taxes already paid, these values must be entered in historical or YTD Amounts to allow QuickBooks to calculate maximum deductions properly.
We have discussed the first task in setting up payroll in QuickBooks – setting up payroll items in the previous blog.
The second payroll task, Setting Up Employees, will be discussed here. There are two (2) parts of Setting Up Employees:
- Setting Employee Defaults - which is discussed here, and
- Creating Employee Records - which will be discussed in the next blog.
For most businesses, a common payroll items are usually set up for all employees. Instead of adding these items to each employee, QuickBooks make it easy by letting us assigning payroll items in Employee Defaults window:
Go to Edit > Preferences > Payroll & Employees, select Company Preferences and click Employee Defaults button, or
Go to Employee Centre > Manage Employee Information, select Change New Employee Default Setting: