Skip to main content
U
userjim-keaney
August 21, 2022
Question

How do I pay my only employee (myself) their entire salary in 1 payment without QBO payroll incorrectly withholding extra taxes (it assumes that I earn 12X as much)?

  • August 21, 2022
  • 2 replies
  • 0 views
QBO Payroll requires I choose Weekly, Bi-Weekly, Monthly. I need a yearly option, otherwise the taxes withheld are crazy. Any workarounds?

2 replies

Rubielyn_J
Rubielyn_J
August 21, 2022

I'm here to provide some information on how you can pay an employee, @userjim-keaney.

 

When creating a paycheck in QuickBooks Online, a yearly payroll schedule is unavailable. You can only set up Weekly, Bi-weekly, Semi-monthly, and monthly schedules. 

 

If you wish to set up a yearly payroll schedule, we can manually enter a payroll paycheck by creating a journal entry. By doing this, you will also need to manually calculate your taxes. 

 

To begin, make sure to create a manual tracking account to help track your payroll liabilities and expenses. Then, after you pay your employees (yourself) outside of QuickBooks, create a journal entry.

 

  1. Get your employees' payroll pay stubs or a payroll report from your payroll service.
  2. Click + New.
  3. Choose Journal Entry.
  4. Under the Journal date, enter the paycheck date.
  5. If you want to track the paycheck number, enter it in the Journal no. field.

 

Use the info from your payroll report to create the journal entry. For more information, please check out this article: Manually enter payroll paychecks in QuickBooks Online.

 

In case you want to get a closer look at your business's finances, and information about your employees, there are several payroll reports you can use to view them. For further information, you can check out this resource: Run payroll reports in QuickBooks Online Payroll.

 

Feel free to leave a comment below if you have other questions about creating a paycheck to pay your employee in QuickBooks. I'll be around to help you. Keep safe and have a good day!

U
userjim-keaneyAuthor
August 30, 2022

This is a ton of work and frankly defeats the point of having this Payroll Add-on service. Can't QBO just add a 'yearly' option to their existing Payroll system that calculates accurate taxes?

    C
    CharleneMaeF
    August 30, 2022

    Your ideas matter to us, userjim-keaney.

     

    I can see how the ability to add a yearly option when paying employees would be beneficial to your business. I'd recommend sending a feedback request directly to our Product Development team. It helps us improve the features in the program. 

     

    Here's how:

     

    1. Go to the Gear menu and then select Feedback.
    2. Type in your feature request in the description box.
    3. Once done, click on Next.

     

    You can track the request through the Customer Feedback for QuickBooks Online website.

     

    Additionally, here's an article that'll help you learn more about paying your employees: Create and Run your Payroll.

     

    I'm only a few clicks away if you need assistance running payroll. It's always my pleasure to help you out.

    1
    10990
    December 21, 2023

    Did you find a solution to this?

    J
    JamaicaA
    December 21, 2023

    Good day, @10990.

     

    It's my pleasure to provide the help you need. To do so, I need more information about what concern you have. Are you having difficulty with running payroll? Do you need help with handling taxes? Please know that any additional data would help us get on the same page. 

     

    I'll be on the lookout for your response. Have a great day.

    1
    10990
    December 21, 2023

    yes, I would like to know how to pay an entire salary in 1 payment. I don't see the annual as pay schedule option.  Only weekly, biweekly, monthly.   I read somewhere about creating a journal entry however I would like to do it so it shows a w2 and tax deductions.

    Terms & ConditionsAccessibility statement