Content Conversations

Change to Payroll for Manual Calculations in QuickBooks 2018, 2019

Submitted by QuickBooks instructor Wendy Hays, Central Oregon Community College.

As of November 2019, a recent update to QuickBooks has made it much simpler to set up payroll for manual calculations. The update may affect users of QuickBooks 2018 and QuickBooks 2019. Instructor Wendy Hays at Central Oregon Community College has created a helpful video explaining the change and how it affects the steps on pages 332 and 335–337 in Chapter 8 of Computerized Accounting for QuickBooks.

Visit the following link to see the video, or review the revised steps below. Click here to watch the video.


Revised Steps for Chapter 8 of Computerized Accounting for QuickBooks 2019

Chapter 8 shows you how to customize your payroll setup. When you’re processing payroll, as we’ll do in Chapter 9, it is really helpful to have detailed accounts to track your payroll liabilities and payroll expenses. This is helpful whether you’re manually calculating payroll yourself or using a payroll service.

Since publication of Computerized Accounting for QuickBooks 2019, Intuit has made a change in how to set up payroll for manual calculations. The update makes the process much easier than how it’s described in Chapter 8. Follow the steps below instead of those in your textbook.

  1. Starting with the chapter problem on page 331, open the Kristin Raina Interior Designs company file as directed, make the backup copy, restore the backup, and change the company name.
  2. Activate the QuickBooks payroll feature as described in Steps 1-4 on page 331. (Go to your main menu bar, click Edit, click Preferences, highlight Payroll and Employees, and then click on the Company Preferences tab. It shows No payroll is selected.)
  3. Click the button that says Full payroll. Beneath it, you will see an option for Manual payroll. This is new. Notice the difference here as compared to Figure 8-A on page 332 of your textbook.
  4. Click the Manual payroll option to select it, and then click Next.
  5. Click Activate to activate manual payroll.
  6. Click OK to acknowledge that manual payroll has been activated.
  7. Click OK a second time.
  8. Continue to pages 332–334 to add to the chart of accounts as directed.
  9. On pages 335–337, skip the process for setting up payroll for manual processing using Help. You do not need to complete these steps. Continue to create the Payroll Item List on page 337.