QuickBooks Payroll Services Review 2025

QuickBooks’ payroll is an add-on but is packed with features to include same-day direct deposit, employee self-service, tax compliance, time and attendance tracking, and benefits deductions.

Multiple Interface Options

The QuickBooks mobile app is intuitive and allows complete control across all devices which connect to a user’s Online Account. There is also a QuickBooks Desktop version available for those wanting to keep their payroll on a local server.

Learn Payroll

No matter what stage of business a user is at, QuickBooks has a collection of articles, videos, and tools to help you hire employees and learn payroll fast.

Features & Live Chat

Click the video to see a quick tour of payroll features and a live agent chat:

Automate repetitive payroll tasks to save time.

QuickBooks Payroll goes beyond payroll processing by offering a range of human resources (HR) features designed to help small and medium-sized businesses manage their employees more effectively. These HR tools simplify tasks such as employee management, benefits administration, compliance, and more. Here’s a detailed look at the HR features available with QuickBooks Payroll:

1. Employee Benefits Management

QuickBooks Payroll integrates with benefits providers to help businesses offer and manage employee benefits:

• Health Insurance: QuickBooks Payroll allows businesses to offer health insurance through partner providers. The system simplifies the enrollment process and automatically deducts premiums from employee paychecks.
• Retirement Plans (401(k)): The platform integrates with retirement plan providers to manage 401(k) contributions. Employees can easily set up their contributions, and QuickBooks handles the payroll deductions.
• Other Benefits: You can also manage additional benefits such as dental, vision, life insurance, and flexible spending accounts (FSAs).

2. HR Support Center

QuickBooks Payroll offers access to HR resources through its HR support center (available with higher-tier plans):

• Employee Handbook Builder: The HR support center includes tools to help you create and customize an employee handbook, ensuring it aligns with labor laws and your business’s policies.
• HR Document Templates: Provides a library of essential HR forms, such as job descriptions, offer letters, and disciplinary action forms.
• HR Compliance Alerts: Receive notifications and updates regarding labor law changes that may affect your business, helping you stay compliant.

3. Employee Onboarding

QuickBooks Payroll streamlines the employee onboarding process:

• Self-Onboarding: New employees can enter their own information directly into the system, such as tax withholding (W-4), personal details, and bank information for direct deposit. This reduces administrative work for HR and payroll staff.
• New Hire Reporting: QuickBooks automatically files required new hire reporting forms with the appropriate state agencies, ensuring compliance with legal requirements.

4. Employee Self-Service Portal

The employee self-service portal empowers employees by giving them access to their personal payroll and HR information:

• Pay Stubs and Tax Forms: Employees can view and download pay stubs, W-2s, and 1099s directly from the portal.
• Update Personal Information: Employees can update their personal details, such as address, contact information, and direct deposit details, reducing the burden on HR staff.
• Benefits Enrollment: Employees can review and manage their benefit options, such as health insurance and retirement contributions, through the portal.

5. HR Compliance and Legal Guidance

QuickBooks Payroll helps businesses stay compliant with federal, state, and local labor laws:

• Compliance Alerts: The platform notifies you of upcoming compliance deadlines and changes in labor regulations, such as minimum wage updates or new workplace safety laws.
• HR Expert Support (Premium and Elite Plans): Access to HR professionals for guidance on employee relations, legal issues, and best practices in human resources. This can help businesses navigate complex HR situations, such as handling disputes or terminations.

6. Time and Attendance Tracking

QuickBooks Payroll integrates with QuickBooks Time (formerly TSheets) to track employee hours:

• Time Tracking: Employees can clock in and out using the mobile app, desktop, or time clocks. The system automatically syncs with payroll, ensuring accurate wage calculations.
• Overtime Management: The system tracks overtime hours, ensuring employees are compensated correctly based on applicable overtime laws.
• PTO and Sick Leave Tracking: QuickBooks Payroll tracks paid time off (PTO), vacation days, and sick leave balances, automatically updating these records as employees take time off.

7. Performance Management

Although QuickBooks Payroll focuses primarily on payroll and compliance, it offers basic tools for tracking employee performance:

• Employee Information Storage: Maintain detailed records of employee performance reviews, job descriptions, and disciplinary actions within the system.
• Employee Notes: Managers can add notes related to employee performance, helping with future reviews and decision-making.

8. Employee Management Tools

QuickBooks Payroll helps businesses manage their employees through a centralized platform:

• Organizational Charts: Provides a visual representation of your company’s structure, helping managers track reporting relationships and team composition.
• Employee Records: Stores comprehensive employee information, including job titles, wages, hire dates, and work history, all in one place.

9. HR Reports and Analytics

QuickBooks Payroll provides various reports to help businesses monitor their HR activities:

• Employee Turnover Reports: Track employee turnover rates and reasons for separation, helping you identify potential retention issues.
• Labor Cost Reports: Analyze the total cost of wages, taxes, and benefits to understand how labor expenses impact your bottom line.
• Compliance Reports: Generate reports that detail employee eligibility for benefits, tax withholding summaries, and more, helping with regulatory compliance.

10. Paid Family Leave (PFL) and Paid Time Off (PTO) Management

QuickBooks Payroll allows businesses to track and manage paid leave:

• Leave Accrual Tracking: Automatically calculates and tracks leave accrual for employees, including vacation, sick days, and paid family leave (PFL).
• PTO Requests: Employees can submit PTO requests through the self-service portal, and managers can approve or deny them with just a few clicks.

QuickBooks Payroll is designed to automatically stay up-to-date with the latest tax laws and regulations at the federal, state, and local levels. Here’s how QuickBooks Payroll manages tax updates to ensure compliance and accuracy:

1. Automatic Tax Rate Updates

QuickBooks Payroll automatically updates the tax rates for federal, state, and local taxes. These updates include:

• Federal Tax Rates: Social Security, Medicare, federal income tax withholding, and unemployment taxes (FUTA) are automatically updated.
• State Tax Rates: State income taxes, unemployment taxes, and any state-specific payroll taxes are also automatically updated within the system.
• Local Taxes: If your business is in a location that requires local payroll taxes (e.g., city taxes), QuickBooks Payroll will automatically apply the correct local tax rates.

The system continuously monitors tax law changes and applies them to your payroll calculations as soon as they take effect.

2. Compliance with Tax Law Changes

QuickBooks Payroll is regularly updated to comply with new tax laws, such as changes to withholding formulas, thresholds, or deductions. This ensures that:

• New Tax Laws: Any changes to tax laws (such as updates from the IRS or state governments) are applied automatically, without requiring you to manually adjust settings.
• Year-End Updates: At the end of the tax year, QuickBooks Payroll ensures compliance with new tax regulations, including updates to W-2s, 1099s, and other required forms.

3. Real-Time Updates During Payroll Runs

When you run payroll, QuickBooks Payroll automatically checks for any tax updates that need to be applied:

• Instant Calculations: The system automatically recalculates payroll based on the latest tax rates and withholding requirements, ensuring that payroll is accurate and up to date.
• Error Prevention: If there are any discrepancies or updates needed before you submit payroll, QuickBooks will notify you and guide you through the necessary changes.

4. Filing Updates and Notifications

• Automatic Filing Adjustments: QuickBooks Payroll will automatically adjust your payroll filings to reflect updated tax laws. This includes submitting the correct amounts for federal, state, and local taxes.
• Tax Filing Reminders: If a tax law changes or requires your action (such as new forms or additional filings), QuickBooks Payroll sends notifications and reminders to ensure compliance.

5. Self-Adjusting Based on Employee Location

If your business has employees in multiple states or localities, QuickBooks Payroll will:

• Adjust for Multi-State Taxes: The system tracks employee work locations and applies the correct state and local tax rates accordingly.
• Automatically Handle Relocation: If an employee moves to a new location with different tax requirements, QuickBooks will automatically apply the updated tax rates and withholding requirements based on the new address.

6. Payroll Tax Support

QuickBooks Payroll provides support and guidance on tax issues:

• Support for Tax Questions: If you have questions about tax updates, QuickBooks Payroll’s customer support team is available to assist with specific payroll tax issues.
• HR and Tax Guidance (Higher Tiers): Some plans offer access to HR and tax experts who can provide insights into compliance and assist with more complex tax scenarios.

Expand payroll functionality with third-party integrations.