New QuickBooks Online Payroll - 'Auto Payroll'

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In this mini-series we have been looking at the new QuickBooks Core, Premium or Elite Payroll Subscriptions. One of the options of these new subscription is an 'Auto Payroll' feature available after users have initially set-up payroll, and manually run their first payroll.  Let's look at this great new option available to some Users.

How Auto Payroll Works

After running the first payroll, you can turn on Auto Payroll to reduce the amount of time spent processing payroll. QuickBooks Online Payroll will auto populate payroll information based on the previous payroll. Auto Payroll automatically imports hours for each worker from their previous payroll run data. 

Payroll users must meet the following eligibility criteria: 

  • Active Core, Premium or Elite payroll
  • All employees must be either salaried or have default hours set
  • All employees are on a single pay schedule
  • The company’s payroll setup is fully complete
  • The company has run their first payroll
  • The Payroll User does not have a TSheets account
  • The Payroll User does not use timesheets

Turning-on Auto Payroll

You must enable (turn-on) Auto Payroll. The steps to setting-up Auto Payroll are:

  1. Select Gear icon 
  2. Select Payroll Settings
  3. Check Automatically pay your employees
  4. Select Save
  5. Select Done

The Auto Payroll Process

There are several important things to remember regarding the states of the 'Auto Payroll' process.

  • A payroll preview summary will be emailed 1-2 days for review so any changes can be made. The preview summary shows the total amount of your payroll and number of employees paid. If you need to make changes to your employees or payroll, see the steps below. The deadline to make the changes is listed in your email.
  • If there are no changes paychecks will be created by Auto Payroll after the cut-off time. 
  • Funds, for employees on Direct Deposit, will be debited according to money movement lead time. This is the number of days before pay date that net pay funds are due, see what your lead time is in your Payroll Settings.
  • On Payday, your employees on Direct Deposit will get paid automatically.
  • You will need to log in to QuickBooks Online Payroll and manually print checks for any of your employees getting paid using paper checks.  

Remember, Auto Payroll will use predetermined regular, additional hourly types including OT, and PTO hours. With Auto Payroll on, the default action for future pay runs is to import the hours from the last run payroll for each employee.

You can find your lead time and deadline to edit your payroll in your payroll summary email. If you want to review the populated payroll run, click the Run payroll button in the Employee tab of the Payroll center.

Changes to Auto Payroll

Auto Payroll supports both a one time change and recurring changes. One-time changes can be made by reviewing the payroll run and editing as needed. Changes to the recurring Auto Payroll is just as easy just remember to make changes before the deadline.

  1. Select Payroll
  2. Select Employees
  3. Select the employee
  4. Change any employee setting such as salary, deductions, default hours as required

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Auto Payroll saves a ton of processing time. Just remember a few key things; you cannot use timesheets; Auto Payroll is for employees not contractors, and updates to payroll dollars need to be made before the cutoff.

If you decide to turn off Auto Payroll go back to the Gear icon, select Payroll settings, Auto Payroll and turn off.