Add-Employee-to-QuickBooks-Payroll

Have you recently hired a new employee and need to Add Employee to QuickBooks Payroll? Setting up a new employee is usually straightforward, but entering the right information from the start is important to avoid payroll mistakes later. You’ll need details such as the employee’s name, contact information, Social Security number, hire date, tax information, and pay details. Direct deposit information may also be needed if you plan to pay the employee electronically.

Whether you use QuickBooks Online Payroll or QuickBooks Desktop Payroll, the process to Add Employee to QuickBooks Payroll is slightly different. In this guide, we’ll walk you through the process step by step.

What Information is Needed to Add Employee to QuickBooks Payroll?

Before you start, it’s a good idea to have the employee’s information ready. This makes the setup easier and helps you avoid entering incorrect payroll details. You may need the following details:

  • Personal information: Full name, home address, phone number, email, date of birth, and Social Security number.
  • Tax information: Completed W-4 and applicable federal and state tax details. Make sure your payroll tax settings are current before processing payroll. See our QuickBooks Payroll Tax Table Update guide for more information.
  • Employment details: Hire date, pay type, pay rate, and pay schedule.
  • Direct deposit details: Bank account information if you plan to pay the employee by direct deposit.
  • Other payroll details: Applicable deductions, benefits, or sick and vacation policies.

The information you need can vary depending on your QuickBooks Payroll service, so keep the employee’s documents available before you begin.

How to Add Employee to QuickBooks Payroll?

If you want to Add Employee to QuickBooks Payroll, the steps depend on whether you’re using QuickBooks Online Payroll or QuickBooks Desktop Payroll. If you encounter problems while setting up or processing payroll, see our QuickBooks Online Payroll Not Working guide for additional troubleshooting steps. Before you begin, keep the employee’s personal information, tax details, and pay information ready. This will make the setup easier and help you avoid common payroll errors.

add-employee-to-quickbooks-payroll

Add an Employee to QuickBooks Online Payroll

  • Open your QuickBooks and go to All apps to select Payroll, then choose Employees.
  • Click Add employee.
  • Enter the employee’s first name, last name, and email address. If you need help configuring email-related settings in QuickBooks, see our QuickBooks Email Setup guide.
  • Select Continue to onboard.
  • Enter the employee’s personal, work, and payroll information.
  • Add pay type, working hours, and any additional pay types that apply. If payroll subscription or employee setup issues prevent you from completing the process, check QuickBooks Error PS036 for possible solutions.
  • Review the information and select Finish onboarding. If QuickBooks cannot complete the payroll setup or update, you may also encounter QuickBooks Error PS033.

Before processing the first paycheck, make sure your payroll information and tax updates are current. If a payroll update fails, see our QuickBooks Payroll Update Not Working guide.

You can also use Quick add if you prefer to Add Employee to QuickBooks Payroll yourself instead of having the employee complete their own details. If you use a payroll service that includes additional payroll processing options, you can also review QuickBooks Assisted Payroll to understand how the service works.

Add an Employee to QuickBooks Desktop Payroll

If you’re using QuickBooks Desktop Payroll, you can add the employee directly from the Employee Center.

  • Open QuickBooks Desktop and your company file.
  • Go to Employees and select Employee Center.
  • Click New Employee.
  • Enter the employee’s personal and contact information.
  • Open Payroll Info and enter their pay schedule, pay type, and pay rate.
  • Add the required tax information and any applicable deductions or benefits.
  • Enter the hire date under Employment Info.
  • Add direct deposit details if applicable.
  • Review the information and click OK to save the employee.

Once saved, the new employee will appear in your Employees list and can be included in your next payroll run.

How to Add an Employee for Direct Deposit?

If you want to Add Employee to QuickBooks Payroll and pay the new employee by direct deposit, you’ll need to set up their banking information in QuickBooks Payroll.

  • Open the employee’s profile in QuickBooks Payroll.
  • Go to the Payment method or Payroll Info section, depending on your QuickBooks version.
  • Select Direct deposit.
  • Enter the employee’s required bank account information.
  • Review the details carefully before saving.
  • Save the employee’s updated payment information.

If your QuickBooks Payroll setup allows employees to enter their own information, you can also invite the employee to complete their direct deposit details through QuickBooks Workforce.

Can an Employee Enter Their Own Information in QuickBooks Payroll?

Yes, QuickBooks Payroll allows you to invite employees to provide some of their own information through QuickBooks Workforce, depending on your subscription. When you Add Employee to QuickBooks Payroll, this option can save time and reduce the amount of information you need to enter manually.

During employee onboarding, you can invite the new hire to complete the required details. They may be able to provide. The employee may be able to provide information such as:

  • Personal and contact details
  • Tax withholding information
  • Banking information for direct deposit
  • Other details required during payroll setup

After the employee completes the information, review their profile before processing Payroll to make sure you successfully Add Employee to QuickBooks Payroll with the correct details. Make sure their pay type, pay rate, tax information, and other payroll details are correct.

How to Add a Rehired Employee to QuickBooks Payroll?

If you are bringing back a former employee, you may not need to create a new employee profile from scratch. QuickBooks workforce offers a Rehire option in eligible subscriptions, allowing you to select an existing employee and update their information for the new employment period. Here’s how to rehire an employee in QuickBooks Online Payroll:

  • Sign in to QuickBooks and go to All apps, then click Payroll and select Employees.
  • Select Add employee.
  • If the option is available, switch to Rehire.
  • Select the former employee you want to bring back.
  • Enter or update their email address if needed.
  • Select Continue to onboard.
  • Review their personal and work information, then update their pay type, pay rate, working hours, and other applicable payroll details.
  • Check their tax withholding information, payment method, benefits, and deductions. You should also make sure their payroll records are accurate for future tax reporting and Print W-2 Forms in QuickBooks when required. Update anything that has changed since their previous employment.
  • Complete the onboarding process and select Finish onboarding.

Once you’ve finished, open the employee’s profile and make sure their information is accurate before including them in your next payroll run.

What If You Use QuickBooks Desktop Payroll?

The steps may differ now and depending on your QuickBooks Desktop version. You need to check the former employee’s existing record before adding them again, and follow the workflow supported by your payroll service. Avoid creating a duplicate profile unnecessarily.

Important Note: Don’t consider the employee previous payroll details are still accurate. Review their current pay rate, tax forms, payment method, and employment dates. If you are rehiring them in the same tax year, so check their year-to-date payroll records to ensure wages and tax reporting remain accurate.

How to Set Up Payroll Taxes for a New Employee Working in Another State?

When you Add Employee to QuickBooks Payroll, you may need to complete additional tax setup if the employee lives or works in a different state. Before running Payroll, check whether your business needs to register for state payroll taxes or update its existing tax setup. Here’s what you should do:

  • Confirm the employee’s work location: Find out where the employee will physically work, especially if they’re working remotely.
  • Check state tax requirements: Review the applicable state rules to determine whether you need to register for withholding taxes or other payroll taxes.
  • Update the employee’s information: Open the employee’s profile in QuickBooks Payroll and check their work location and state tax details.
  • Complete the necessary tax setup: Enter the applicable withholding information and complete any required state tax registration or configuration. If QuickBooks displays a payroll update error during the process, QuickBooks Error PSXXX may help you identify common payroll update issues.
  • Review the details before running Payroll: Make sure the employee’s work location, tax settings, and pay information are correct.

Once you’ve completed the required setup, review the employee’s payroll information before processing their first paycheck.

Conclusion!

Learning how to Add Employee to QuickBooks Payroll can make your payroll tasks easier. Whether you use QuickBooks Online Payroll or QuickBooks Desktop Payroll, make sure you enter the correct employee details, pay rate, and tax information. Always review everything before running Payroll to avoid common errors and ensure your new employee is ready for their first paycheck. If you are still looking for further assistance, you can contact the Data Service Team live technicians at +1(888)-718-7888.

Frequently Asked Questions (FAQ’s)

First, go to All apps, click Payroll, then choose Employees in QuickBooks Online and select Add employee. Enter the required details and complete the onboarding process. In QuickBooks Desktop, go to Employees > Employee Center > New Employee.

You’ll generally need the employee’s name, address, Social Security number, hire date, tax information, pay rate, and pay schedule. Bank details are also needed if you plan to use direct deposit.

Yes. Depending on your subscription, you can invite employees to enter their tax and banking information through QuickBooks Workforce. Review their details before running Payroll.

Open the employee profile and find the direct deposit or payment method settings. Enter the required bank details, complete any necessary authorization steps, and save the information. The exact process depends on your QuickBooks Payroll version.

Open the employee profile, select the relevant information section, and make the necessary changes. Save the updates and check that the employee’s payroll details are correct.

Employee limits and pricing can vary by QuickBooks Payroll subscription. Check your current plan details or contact QuickBooks Support to confirm the limit for your account.

Some QuickBooks Payroll services support importing employee information from compatible systems. The available options depend on your subscription and the source system. Review imported details and fill in any missing information before running Payroll.

Yes. You can generally add an employee without bank details if you plan to pay them using another supported payment method, such as a paper paycheck. Bank information is needed to set up direct deposit.

Open the employee’s profile and correct the information in the appropriate section. If the error affects an already processed paycheck or tax filing, you may need additional corrections. Contact a Data Service Team professional if you’re unsure what to do.

This may happen because of account permission issues, an inactive subscription, missing required information, or a technical problem. Check your account access, payroll subscription, and required fields. Also, make sure the employee doesn’t already have a profile.

You must check the employee name, hire date, pay rate, pay schedule, tax information, deductions, benefits, and payment method. Make sure all required onboarding details are complete and review the paycheck before submitting Payroll.

About The Author

Steven Moody

Steven Moody is a bookkeeping and payroll specialist dedicated to helping businesses maintain accurate financial records and efficient payroll operations. His expertise includes payroll management, tax compliance, bookkeeping solutions, and financial reporting. Steven regularly shares insights on accounting best practices and business finance strategies. Outside of work, he enjoys traveling, exploring new places, and keeping up with the latest developments in business technology.

Steven Moody

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