1. Check Payroll News and Updates to find out the number of the latest payroll update.
2. Check whether that is the same update as you have in your QuickBooks:
   1. From the Employees menu, choose Get Payroll Updates.
   2. The tax table (payroll update) version number is located at the top of the window.
   3. If not on the current payroll update, click Download Entire Payroll Update and click the Update button to the right.

• Visit the QuickBooks Checks, Forms, and Supplies web site.
OR
• Call: 800.548.0289

The end of the year is a good time to review employee information that can affect W-2 forms and, possibly, paychecks issued in the next tax year.

Be sure to check:

• Names, addresses, and social security numbers
• Retirement plan eligibility

1. Go to the Employee Center and click on the Employees tab.
2. Click the arrow button next to the View drop-down list and choose All Employees.
3. Double-click on the employee name to review the names, addresses and social security numbers for any errors or missing information.
4. From the Change tabs drop-down list, click Payroll and Compensation Info.
   QuickBooks 2013: Click the Payroll Info tab.
   Note: If the Employee is covered by a qualified pension plan checkbox is selected in the employee record, the same checkbox will be selected on the W-2 form. You can also select or click to clear the checkbox directly on the W-2 form. See Print W-2 forms for more information.
5. Make any changes necessary and save the changes by clicking OK.

To write a bonus check for an employee:

1. Go to the Employee Center and click the Payroll tab.
2. In the Pay Employees section, click Unscheduled Payroll.
3. In the Enter Payroll Information window, select the employee to whom you're giving a bonus.
4. Click Open Paycheck Detail.
5. Clear any earnings or benefits for the selected employee by clicking in each field that has a rate or number and pressing Backspace or Delete.
6. In the Item Name field, add the bonus item, and enter the amount of the bonus in the Rate field. Note: If you want to give the employee the entire bonus amount, select the Enter net/Calculate gross checkbox (this option is only available with Enhanced Payroll).
7. Check that the Do not accrue Sick/Vac checkbox is selected.
8. Click Save & Next or Save & Close.
9. Click Continue.
10. Click Create Paychecks.

Regardless of the current employee status, any employee who received a paycheck during the year will receive a W-2 form for that year.

Be sure to check terminated employees for:

• Names, address, and social security numbers
• Retirement plan eligibility
  

1. Go to the Employee Center and click on the Employees tab.
2. Change the View to All Employees.
3. Click the name of the released employee.
4. Review the transactions in the list on the right.
   QuickBooks 2013: Click the Transactions sub-tab.
5. Double-click the termination (typically the last) paycheck and click Paycheck Detail. Ensure all vacation and sick time has been paid out.
6. Close out of the paycheck. Do not save any changes. If you need to pay out vacation or sick time, create a new check for this amount and deliver to the employee.
7. Double-click the name of the released employee to access the Edit Employee window.
8. In the Change tabs drop-down list, select Employment Info.
   QuickBooks 2013: Click the Employment Info tab.
9. Verify that all information is current and that the Release date is correct.
10. Click OK to close the Edit Employee window.

Before you create paychecks in the new tax year, confirm that all compensation and benefit types are correct, and that the rates for each is correct. Be sure to check for:

• Deferred compensation
• Group term life insurance
• Third-party sick pay

1. Go to the Lists menu and click Payroll Item List.
2. Double-click the item to review the setup.
3. Navigate to the Tax Tracking type window and check that the correct Tax Tracking type is selected. If you are unsure what Tax Tracking type should be selected, consult your accountant or the agency that manages the benefit for your company.
4. Navigate to the Default Rate and Limit window and ensure the default rate and annual limit are correct. If there are different rates or limits for individual employees, you may want to ensure these fields are blank and set the rate and limit for each employee separately.
5. Click Finish to save any changes you have made.

To review any benefits that have been added to the employee defaults or to an individual employee record:

1. Go to the Employee Center and click on the Employees tab.
2. Double-click the employee name
3. From the Change tabs drop-down list, click Payroll and Compensation Info.
   QuickBooks 2013: Click the Payroll Info tab.
4. Review the information in the Additions, Deductions, and Company Contributions section. If you need to edit the information, click in the field and make the edit and then click OK.
5. Click OK to save your changes.

Any future paychecks created for that employee will include the new information.

Review wages and benefit levels.

Before your first payroll of the new year, you may want to take the time to review wages and benefits for all active employees. To do so:

1. Go to the Employee Center and click on the Employees tab.
2. Double-click the name of an employee to access the Edit Employee window.
3. In the Change tabs drop-down list, select Payroll and Compensation Info.
   QuickBooks 2013: Click the Payroll Info tab.
4. Ensure the items, rates and limits are correct in the Earnings and Additions, Deductions and Company Contributions sections.
5. Click OK to close the Edit Employee window.

1. Go to the Employee Center and click on the Employees tab.
2. Double-click the name of the employee to access the employee record.
3. In the Change tabs drop-down list, click Payroll and Compensation Info.
   QuickBooks 2013: Click the Payroll Info tab.
4. Click the Sick/Vacation button.
5. In the Sick and Vacation sections, review the sick and vacation settings. For example, if your company sick or vacation policy indicates that the hours reset every January 1st, then make sure that the Reset hours each new year checkbox is selected.
6. Click OK to save any changes and close the Sick and Vacation window.
7. Click OK to close the Edit Employee window.

If your state unemployment rate has changed, you will need to update the rate in QuickBooks.

To update your State Unemployment Insurance (SUI) and State Disability Insurance (SDI) rates in QuickBooks:

1. Verify the current SUI and SDI rates for your state.
2. In QuickBooks, go to the Lists menu and click Payroll Item List.
3. Select your state disability insurance or your state unemployment insurance payroll item.
   Note: If your state disability insurance is collected by a private agency, the associated payroll item may be set up as other tax, not state disability.
4. Click the Payroll Item button and then click Edit Payroll Item.
5. Click Next until you see the Tax Rates window.
6. Enter the new rate in the Company rate or Employee rate field. You must enter the rate for each quarter.
   Note: QuickBooks allow you to enter next year's SUI tax rates prior to the start of a new year (when your computer system date falls between July 1 and December 31 of the current year.) If this applies to you, field(s) will appear at the bottom of the screen for you to enter your new SUI rate for next year.
   
7. Click Next and then click Finish to save your changes.

For instructions on how to set up 1099 vendors and pay them in QuickBooks, see Set up a vendor and print 1099/1096 forms. Check to ensure the accurary of information such as name, address and federal identification numbers.