Detailed Guide to Add Employee to QuickBooks Payroll

Last Updated on January 20, 2026

The payroll feature in QuickBooks is an essential tool that helps users send paychecks, calculate and file taxes, handle employee deductions, and easily complete W-4 forms. However, payroll is a subscription-based service offered by QuickBooks. This feature is available on both the online and Desktop versions of QB. If you wish to send and calculate taxes or paychecks for any employee, you should know how to add employee to QuickBooks Payroll in your database. This blog is an explanatory guide to help you add a new employee.

If you need any further help with your payroll in QuickBooks, reach out to the relevant teams at +1(855)-510-6487 for a free consultation!

What are the Types of Payroll Services Offered by QuickBooks?

Before moving on to the steps of adding a new employee to your payroll, you should first understand the types of payroll services offered by QuickBooks. First, we will discuss QuickBooks Desktop Payroll.

QuickBooks Desktop Payroll

Although the subscription plan for QuickBooks Desktop no longer exists, you can still upgrade to a newer version—QB Payroll Enhanced or Enterprise—to help you choose the payroll plan that best meets your needs.
Now, let’s learn about the Online version of QB.

QuickBooks Online Payroll

When you are working with the online version of QuickBooks, you can choose between the payroll core, simple start, payroll core + essential, payroll premium + plus, and payroll advanced. Let’s discuss in depth the deliverables offered by all the versions mentioned above.

• Payroll Core + Simple Start: The features this type of payroll offers are as follows:
  • Track GST & e-lodge BAS
  • Insights & reports
  • UNLIMITED invoices & quotes
  • Free onboarding session
  • Automated Payroll
  • Track income & expenses
  • Track kilometres
  • Track kilometres
  • Snap & store receipts
  • Connect your bank
  • Cash flow planner
  • Phone & chat messaging support
  • 250 Chart of Accounts
  • Manage one user

• Payroll Core + Essential: The features include all the features in the previous subscription, and additionally, some add-ons as follows:
  • Manage three users simultaneously.
  • Free data migration feature.
  • Multi-currency.
  • Set up a continuous transaction.
  • Manage suppliers & bills.

• Payroll Premium + Plus: This subscription plan includes all the previous benefits and also can:
  • Manage five users.
  • Track 40 locations and classes.
  • Manage budgets.
  • Manage projects.

• Payroll Advanced: This subscription plan is the most premium plan that can be offered to any user, also delivering features like:
  • Manage 25 users.
  • Custom reporting fields.
  • Customize role permissions.
  • Customize dashboards.
  • Backup & restore data.
  • Automate workflows.
  • Manage revenue recognition.
  • Data sync with Excel.

These were the subscription plans offered in QuickBooks Online, from which you can choose to set up the payroll service for your company. Now that we know the types of payroll plans provided by QuickBooks Online and Desktop, let’s move on to the key aspects to consider when adding a new employee to payroll.

Things to Keep in Mind Before You Add Employee to QuickBooks Payroll

The section below covers the key aspects to keep in mind when adding an employee to QuickBooks Payroll.

• Ensure you have all the details —name, address, SSN, pay rate, and tax details — for the employee to perform the steps without any chaos.
• Create a distinction between employees and contractors to avoid tax filing problems.
• Also, ensure you explain how often each employee is paid in payroll.
• Access the W-4 form to set up federal and state taxes.
• Define the deductions in the employee database for accurate calculation.
• Check and verify the information you have entered.

Now, let’s learn the steps to add employee to QuickBooks Payroll.

Detailed Steps to Add Employee to QuickBooks Payroll

After choosing the plans you need for your payroll services, let’s now learn how you can add employee to QuickBooks Payroll. Below are the steps to be followed:

Step 1: Get All the Information for the Employee

When you add an employee to QuickBooks Payroll, the first step is to gather all the employee information. Listed below are the documents you need.

• W-4 Form: The W-4 should contain personal information, such as name, address, social insurance number, dependents, and adjustments. After the employee is added to the workstation, they can enter their details.
• I-9 Form: This form is an Employment Eligibility Verification form, which is used by employers to verify the employee’s identity. A new employee gets a Social Security Number, which is needed to add the employee to QB Payroll. The SSN should not be replaced with an ITIN for employment or employee identification purposes. The SSN code begins with the digit ‘9’.
• An employee’s email address is required to invite them to add their details and personal information so they can access their pay stubs and W-2 forms online.
• The location where the employee is working should be recorded.
• Ensure you note the employee’s salary or pay rate, pay schedule, and the type of pay they withhold.
• Since payroll is a direct deposit method, you must have your employees’ banking details and essential information. A single employee may add up to 2 bank accounts.
• When you set up QuickBooks payroll for the first time and have paid your employees for the first year of their employment, the year-to-date salary slip is required to calculate the accurate year-end taxes they must pay.

Next, we will discuss the steps for adding a new employee in both QuickBooks Desktop and Online.

Step 2: Add an Employee to QBDT and QBO

Let’s now review the steps to add an employee in QBDT and QBO. First, we will learn how to do it in QuickBooks Desktop. You should also check the information, which is as follows:

• Pay schedule or frequency.
• Sick or vacation policies.
• Earnings or Deductions.
• The state taxes.

Ensure that you are signed in as an admin user to set up the settings as defaults. Follow the steps:

• Move to the Edit menu.
• Choose Preferences.
• Select the Payroll and Employees section.
• Now, go to the Company Preferences tab.
• Choose Employee Defaults, then make the changes you want.
• Tap on OK.

When you are a QuickBooks Desktop Payroll Enhanced user, you can add an employee in two different ways. Either you can export with the QuickBooks Online Payroll, or you can follow the steps as mentioned below:

• Set up the information details and invite your employees.
• Now, the employee must add the details themselves.
• Head to the Employees.
• Move to the Employees Center section.
• Select the New Employee tab and enter the employee information.
• Tap on OK.

Now, add the new employee to QuickBooks Online Payroll:

• Open QuickBooks Online and sign in.
• Go to the Payroll menu.
• Now, choose the Employees tab.
• Select the Add an Employee column.

The section above covers the steps you need to follow to add employee to QuickBooks Payroll in QBDT and QBO.

Conclusion

This blog is a helpful guide for adding employee to Payroll, whether you use the online or desktop version. We have covered all the essential aspects you need to understand before you start adding employees to QB Payroll. Moreover, we have discussed the steps you need to follow to add a new employee to your payroll database. If you need any help with the QuickBooks payroll, feel free to get in touch with our experts at +1(855)-510-6487.

Frequently Asked Questions (FAQs)

Kate Churchill

Kate is a certified public accountant (CPA) with expertise in various accounting software. She is technically inclined and finds passion in helping businesses and self-employed people carry out bookkeeping, payroll, and taxation without worrying about errors. Every once in a while, Kate loves to travel to far-off places and relax in the lap of nature.