Hiring First Employee - noob question

[bimmer84]

I am getting to the point where I will hire my first employee. I do not plan to use Quickbooks for Payroll. I will use a payroll provider that will pull from my bank account and pay taxes.

Should I still put every employee on Quickbooks? Is there a reason to have them there, other than for payroll purposes?

Any guidance is much appreciated. Don't assume it is too basic.

[cojhl2]

You need to talk this over with your accountant.

Off the cuff, I would say you don't need to duplicate the employee info. But,, I don't know about govt reporting. You are the employer!

[Deidre56]

if you have a payroll service provider you do not need the employees entered into QB. there is no need for them. Using a summary report from your payroll provider you can journal entry in yoru payroll figures.

[bimmer84]

Originally Posted by cojhl2

You need to talk this over with your accountant.

Off the cuff, I would say you don't need to duplicate the employee info. But,, I don't know about govt reporting. You are the employer!

Originally Posted by Deidre56

if you have a payroll service provider you do not need the employees entered into QB. there is no need for them. Using a summary report from your payroll provider you can journal entry in yoru payroll figures.

Thank you Deidre and cojhl2. I appreciate your guidance.

Deidre, what accounts do you use for your payroll figures? Do you use one account for the entire payroll figure, or separate it out into different accounts that separate taxes from pay?

[Joe Williams]

I would setup an expense account Payroll with subaccounts Employee Gross and Company Taxes/Contributions.
This will allow you to see the payroll and the company's amount in the P&L.

[bimmer84]

Originally Posted by Joe Williams

I would setup an expense account Payroll with subaccounts Employee Gross and Company Taxes/Contributions.
This will allow you to see the payroll and the company's amount in the P&L.

Thanks Joe! That is just the kind of clarification I needed.

[lu4emason]

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