How To Activate QuickBooks Desktop Pro or Premier Payroll Subscription

To activate a QuickBooks Desktop Pro or Premier Payroll subscription, purchase the payroll subscription online, by phone, or at a retail store. You will receive a 16-digit service key via email or find it on the yellow sticker of the product box. Once you have the service key, go to the Employees menu, select Payroll, choose “Enter Service Key “, and update the payroll status to “Active.”

There are three types of payroll plans for QuickBooks Desktop Pro or Premier:

• Basic Payroll
• Enhanced Payroll
• Assisted Payroll

The Enhanced Payroll plan is the most common plan for both Desktop Pro and Premier.

The Enhanced Payroll plan requires a yearly subscription to its customers, while the Assisted Payroll offers both monthly and yearly subscription plans.

For Assisted Payroll, users pay a “per employee fee per pay period,” while for Enhanced Payroll, there are no per-employee/ per-paycheck fees ( making it an ideal choice for businesses).

QuickBooks Desktop Pro or Premieri has in-built payroll features such as:

• Automatic Payroll Tax Calculations
• Tax Forms & Filing
• Direct Deposit – pay employees via direct deposit (no extra charge for Enhanced Payroll)
• Payroll Reporting – built-in payroll summary and detail reports
• Employee Management – track employee data: hire date, tax info, pay rates
• Payroll Liability Tracking
• Create paychecks for 1099 contractors
• Payroll tax table updates with an active subscription

Steps to Activate QuickBooks Desktop Pro or Premier Payroll Subscription

Activating a QuickBooks Desktop Pro or Premier Payroll subscription requires purchasing the subscription, retrieving the service key, and entering it within QuickBooks Desktop. Activation methods vary based on whether the subscription was purchased online or at a retail store. After activation, employee profiles must be added, state tax obligations should be configured, and employee defaults can be set up to simplify future entries.

Follow these steps to activate QuickBooks Desktop Pro or Premier Payroll subscription:

Steps to Add Employees under the Payroll Setup in QuickBooks Desktop Pro or Premier

To add employees in QuickBooks Desktop Pro or Premier, enter your employees’ information and invite them to share details using the free QuickBooks Workforce product, available with QuickBooks Desktop Payroll Enhanced.

Here’s the information you will need for each employee:

• Hire date
• Birth date
• Completed Form W-4 and any applicable state-equivalent form
• Pay rate
• Bank account or pay card information for direct deposit (if applicable)
• Any paycheck deductions, such as contributions to insurance, retirement, or wage garnishments
• Sick leave, vacation, and PTO accrual rates and balances (if applicable)

1. Step: Go to Employees > Employee Center
2. Step: Click on New Employee and then enter the employee’s info such as:
   • Personal Information: First and Last Name, Social Security Number, Mail phone and Main Phone, Address
   • Payroll Info: Pay rate, Pay frequency, Pay type, W-4 info, Federal and state taxes,
   • Employee Info: Hire date
   • Worker’s compensation
3. Step: Click on OK.
4. Step: If you added an employee residing or working in another state, complete the new state setup mentioned below and register for taxes there.

1. Determine Applicable State Taxes: Contact state and local tax agencies to identify which taxes apply to your employees. Gather the necessary information:
   • Account number(s)  
   • Deposit frequency  
   • Tax rates
2. Update Employee Information: Once you know the applicable taxes, add a new employee or update details for an existing employee who has moved to a new state.  
3. Set Up State Taxes: Complete the state tax setup to facilitate electronic tax payments and filings. You can start the setup without account numbers, but manual filing will be required until they are added.  
4. Sign Authorization Forms: You may need to sign authorization forms with your payroll service to enable state tax payments and filings.

To Set Up Employee Default in QuickBooks Desktop Pro or Premier Payroll

Set up employee defaults in QuickBooks Desktop for items that apply to most employees. These defaults will automatically populate when you add a new employee, saving you time.

This includes:

• Sick or vacation policies.
• Pay schedule or frequency.
• State of employment and taxes.
• Earnings or deductions.

To access employee defaults as the QuickBooks Admin:

1. Step: Select Edit > Preferences.
2. Step: Choose Payroll and Employees > Company Preferences.
3. Step: Click on Employee Defaults and enter your changes.
4. Step: Select OK twice to save.

How to Set Up Company items in QuickBooks Desktop Pro or Premier? 

Setting up company items is essential for tracking sales, purchases, and inventory accurately.

To set up items to your QuickBooks Desktop Pro or Premier account, follow the below – mentioned steps:

1. Step: Go to Lists > Item List (Windows) or Items (Mac).
2. Step: Click Item > New (Windows) or plus + (Mac) to create a new item (e.g., inventory, non-inventory, service, bundle).
3. Step: Choose the item type, fill out the fields, add Custom Fields if needed,
4. Step: Select Save.

How to Set Up Taxes in QuickBooks Desktop Pro or Premier? 

Tax setup ensures accurate payroll processing and compliance with federal and state regulations.

To set up taxes in QuickBooks Desktop Pro or Premier, follow the below mentioned steps:

1. Step: Go to Employees > Payroll Setup and launch the setup wizard.
2. Step: Enter your business details and employee information.
3. Step: Set up pay types, deductions, and benefits.
4. Step: Configure Taxes:
   • Federal: Confirm your FEIN and forms (e.g., 941, 940).
   • State: Enter state account numbers, deposit frequencies, and SUI rate.
5. Step: Add past payroll data if switching from another provider.
6. Step: Double-check entries and save setup.
7. Step: Use QuickBooks Payroll Enhanced to e-file/pay taxes. You’ll need an EFTPS account and state agency registration.

If using QuickBooks Desktop Payroll Enhanced, you can pay taxes electronically.

Info needed to set up taxes are mentioned below:

• State tax rates (unemployment, surcharges, disability, paid family leave, etc.)
• Federal Employer Identification Number (FEIN)
• Federal and state deposit frequencies (how often to pay taxes)
• State withholding/unemployment account numbers (register with state agencies)

How to Enter / Add Pay History in QuickBooks Desktop Pro or Premier?

If you have paid employees this year, you’ll need to add their paychecks and any tax payments made, which will appear on their W-2 forms at year-end. If you haven’t made any payments yet, you can skip this step.

Required Data for Payroll Processing:

• Pay stubs or payroll reports for each employee paid this year (including former employees).
• Tax liability reports or receipts for payments made.

1. Step: In QuickBooks, go to Employees > Payroll.
2. Step: Start the Setup: If setting up payroll for the first time, begin the Payroll setup interview. 
3. Step: Navigate to Payroll Setup. (for existing setups)
4. Step: Add Payroll History: In the setup interview, confirm that you have prior pay history by selecting “Yes.”
5. Step: Choose Consolidation: Decide whether to consolidate previous quarters’ paychecks or enter them individually. Consolidating is faster if you have quarterly reports.
6. Step: Enter Paycheck Details: If entering paychecks individually, input amounts by date using your pay stubs. For consolidation, enter total amounts per quarter.
7. Step: Repeat for Each Employee: Complete this process for every employee you need to update.
8. Step: Enter Tax Payments: Record any past payroll tax payments via the Payroll Setup window or the method outlined in the QuickBooks article.

Best Practices for Managing Your Payroll Subscription with QuickBooks Desktop Pro or Premier

Start your QuickBooks Payroll setup smoothly by reviewing subscription details, using the correct service key, verifying company info, backing up files, and ensuring you have the latest updates.

Conclusion

Activating QuickBooks Desktop Pro or Premier Payroll requires entering your service key, on boarding employees, configuring taxes, and updating payroll history. Enhanced Payroll charges an annual fee with no per-employee cost, while Assisted Payroll charges per paycheck but includes full tax filing services to safeguard payroll operations. Regularly updating your subscription details and tax information and backing up your data are necessary actions to ensure reliability and accuracy in payroll management.

Frequently Asked Questions

How do I reactivate my QuickBooks payroll subscription?

To reactive QuickBooks Desktop Pro or Premier payroll subscription,  log in as an administrator, then navigate to “Employee” > “My Payroll Services” > “Manage Service Key.”

What should I do if I can’t find my service key in my email?

If you can’t find your service key in your email, check your spam or junk folder. If it’s still missing, use the Service Key Retrieval tool by logging into your Intuit account on the QuickBooks website.

Can I activate payroll without the service key?

You cannot activate payroll without the 16-digit service key, so make sure you have the correct one from your email or product packaging.

What happens after I activate my QuickBooks Desktop Payroll subscription?

After activating your QuickBooks Desktop Payroll subscription, begin by adding employees, completing tax agency setups, and establishing payroll defaults that will automatically apply to new employee records and pay runs.

How many payroll service plans are available for QuickBooks Desktop Pro and Premier users?

QuickBooks Desktop Pro and Premier offer three payroll service plans: Basic, Enhanced, and Assisted. Among them, Enhanced Payroll is the most commonly selected, providing efficient payroll management without per-employee charges.