QuickBooks Desktop Payroll: Basic Vs Enhanced Vs Full Services

QuickBooks is an accounting business tool designed for accountants to manage daily business operations. ​

These business operations cover robust accounting solutions such as the customization of invoices, cash flow tracking, creation and analysis of the business report and payroll functions.

According to a  2019 research by Intuit Investor Day and Statista, the software, serving over 200,000 mid-market customers, is a financial management software used by 64.4 per cent of small businesses. QuickBooks is designed by Intuit and offers many versions on-premise and off-premise.

QuickBooks Desktop is an accounting software locally installed on a desktop or computer to manage daily businesses relating to bank accounts, suppliers, and customers. The desktop version of QuickBooks provides a time-saving feature in business management by providing unlimited software updates and support, tracking daily activities, and improving invoices and stock management visibility.

The payroll version of QuickBooks Desktop offers employee and human resource management services. The software allows for in-house management of onboarding employees, attendance tracking, and compensation and benefit calculation. The software also helps to manage operations such as the hiring process and compliance management. Other inclusive areas are employee dress code monitoring, commission and vacation policies, and handbook customization. QuickBooks scrutinizes tax reports on tax management issues to resolve errors regarding interests rate and penalty charges automatically.
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QuickBooks Desktop Payroll offers three versions for small businesses; the Basic, the Enhanced, and the Full Service.

QuickBooks Desktop Basic Payroll Software

The QuickBooks essential payroll Desktop Software offers primary payroll functions such as payroll support, employee payment, and payment tracking. The software also oversees the sending of direct deposits, payroll tax calculation, and the creation of paychecks. It provides an easy to use method to manage employee-related activities and make easy payments without errors. 
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However, a downside to this Basic payroll version is that it does not offer payroll tax forms and filing options.

​QuickBooks Desktop Payroll Enhanced Version

This is a payroll management software that handles the timely and easy creation and payment of employee/contractor cheques and the calculation of federal and state tax payments. It fully automates the filing of state and federal tax payroll forms, offers free payroll support, handles electronic tax payment and filing of tax forms, and free direct deposit. Additional functions include calculating employee compensation, customization of invoices, regulations of labour law posters, sales tax management, contractor and employee management, inventory tracking and bookkeeping functions. This helps improve compliance, avoid fines and penalties, eliminate double entry, and aid the timely completion of tax reports.
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The Enhanced version allows the management of finance and related activities such as payroll in one place. Users can also file payroll taxes, record expenses, create invoices, track employee vacation time, track invoice status, and manage unpaid bills and their payment plans.

Full-Service QuickBooks Desktop Payroll Software

This Full-Service QuickBooks version is also known as the Assisted Full Service Payroll Software. This, as the name implies, offers full-time services for payroll operations such as the remitting of payroll tax, filing of payroll tax forms, payment of direct deposits, and the preparations of paychecks. Businesses that outsource payroll functions can utilize the provisions of the software to complete payroll set-up, eliminate penalties, electronically pay taxes, handle employee/contractor payment and integrate time tracking tools. The software automatically files tax forms and distribute paychecks based on the number of hours worked by the employee. This is an effective tool for small business owners.

​Differences Between the Versions of the QuickBooks Desktop Payroll Software; Basic Vs Enhanced Vs Full Service Software

Features

Generally, the features of all versions allow for the generation of payroll reports, employee/contractor payments either through direct deposit or cheques, tax withholding calculations, and the creation and printing of paychecks.

The Basic Payroll version does not offer additional services relating to the annual payment and filing of payroll tax payments due to the absence of payroll tax forms. On the other hand, the Enhanced version has additional features such as the electronic tax payment of payroll and the automatic generation of payroll tax forms. The Full-Service option offers high-level services, including the making and filing of payroll tax payments, submission of direct deposit payments, paycheck printing and processing and payroll set-up.

Customer Service

Unlimited customer service is provided to all versions of the QuickBooks Desktop Payroll plan. Phone chats, calls, and email support features are provided to assist users.

Ease of Use

The QuickBooks Assured Payroll/Full Service option is the easiest to use as users only need to input the number of working employees and the software to carry out other functionalities on its own. The Enhanced version has straightforward tools that provide a step-by-step approach in preparing the tax payroll and the set up of employee data forms and payment processing. The Basic Payroll version is relatively self-explanatory. Its tools guide the process of paying employees, setting up new employees and configuring payroll settings. However, the manual preparation of the payroll tax returns may be complex and pose some difficulties. 

Cost

The QuickBooks Full Service option costs $65/month, the Enhanced Payroll version costs $40/month, and the basic payroll version is placed at $29/month. Alternatively, the Basic Payroll costs $290/year, while the Enhanced Payroll version costs $450/year. In all versions and subscriptions options, each employee costs an additional $2.

​Conclusion

The QuickBooks Desktop Payroll Software Versions with three different subscription plans, the Basic Payroll, the Enhanced Payroll, and the Full-Service Payroll, are designed for small businesses to suits other functionalities. At the same time, all versions are suitable for paying either direct deposit or cheque deposits to employees, calculations of paychecks, and the generation of payroll reports. Other arrangements such as the Enhanced Payroll version provides additional functionalities such as the calculations of payroll taxes, the payment of up to 1099 employees, and tracking of vacation time.
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The Full-Service Payroll plan offers all payroll functions just by submitting the working hours of the employees. Businesses should choose the functionalities and pricing plans that suit their business type.