QuickBooks 2005: The Missing Manual

Steps to Take Before Running a Payroll

If your current payroll records aren't correct, running another payroll just makes the matter worse. So to make sure that a payroll run goes smoothly, you should perform a few preliminary steps. The Payroll Checkup feature scans your payroll data for discrepancies or missing data. In addition, you should always update your tax tables before running payroll to make sure that you withhold the correct amounts.

Payroll Checkup

Payroll Checkup examines your employee records and payroll items for missing payroll information and discrepancies. For example, the feature flags an employee record in which you forgot to set up some of the payroll items. The feature also checks the tax deductions withheld. For example, it calculates the Social Security tax for an employee by multiplying the employee's wages by the tax rate and then compares the calculated value to the amount actually deducted.

To run the Payroll Checkup, choose Employees→Run Payroll Checkup. In the Payroll Setup window, on the Payroll Data Review page, click Continue. Payroll Checkup lists any problems it finds with your employee and payroll item setup. Click Edit to open the appropriate window and fix the problem.

Click Continue to begin verifying wage and tax deductions. A progress bar tells you how much of your payroll data Payroll Checkup has scanned. The Wage and Tax Verification Results page appears when the scan is complete and shows any discrepancies. You can click Print Results if ...