QuickBooks Desktop Payroll: Basic vs Enhanced vs Full Service

Intuit offers three payroll services for people using the desktop versions of QuickBooks: Basic Payroll, Enhanced Payroll, and Assisted Payroll. All three QuickBooks Desktop payroll options calculate paychecks and payroll taxes. Basic Payroll and Enhanced Payroll are do-it-yourself, self-service options. Assisted Payroll is Intuit’s full-service offering, where Intuit’s payroll accountants handle payroll duties for you.

When to Use QuickBooks Desktop Basic Payroll

QuickBooks Desktop Basic Payroll is designed for businesses that want just to create paychecks, calculate payroll taxes, and send direct deposits. This is a good option only if the business is willing and able to prepare their own payroll tax forms, such as 940, 941 and W-2, and remit their own payroll taxes. Sign up and run payroll free for the first 30 days or get up to 50% off on your paid subscription.

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When to Use QuickBooks Desktop Enhanced Payroll

QuickBooks Desktop Enhanced Payroll provides complete payroll features for businesses that want to run payroll in-house. Intuit Enhanced Payroll creates paychecks, calculates payroll taxes, and sends direct deposits. Enhanced Payroll also prepares and e-files federal and state tax forms such as 940, 941, and W-2. Payroll tax deposits can be paid electronically through Enhanced Payroll. You can save up to 50% off a paid subscription or take QuickBooks Desktop Enhanced payroll for a free test drive the first 30 days.

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When to Use QuickBooks Desktop Assisted Full Service Payroll

QuickBooks Desktop Assisted Full Service Payroll provides a full-service payroll service to small businesses that prefer to outsource their payroll. Businesses enter hours for employees in QuickBooks, and Intuit’s payroll accountants prepare the paychecks, direct deposits, payroll tax forms, and remit payroll tax deposits on your behalf. Intuit guarantees that their payroll tax returns are filed accurately and on time with no penalties. Sign up for your account and start running payroll free for 30 days or get up to 50% off a paid subscription.

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When to Use an Alternative to Intuit Payroll Desktop

QuickBooks Desktop accounting software users have other options for handling payroll. If you want to do payroll yourself and you’re looking for an alternative to QuickBooks Payroll, we recommend using payroll software like Gusto. After entering the hours worked for each employee, Gusto will calculate payroll checks, allow you to print checks, or submit direct deposit payments. You can also file and make payroll tax payments electronically through Gusto.

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QuickBooks Desktop 2019 Payroll at a Glance

How We Evaluated Intuit Payroll Plans for QuickBooks Desktop

We evaluated Intuit Payroll options for QuickBooks Desktop based on cost, features, ease of use, customer support, and what users had to say. In addition, the product or service should provide you with end-to-end payroll processing, which starts with calculating payroll checks and ends with filing and making payroll tax payments.

When evaluating Intuit Payroll, we considered these factors:

• Cost: The payroll provider should offer a plan that is affordable to most small businesses while also providing the basic features needed to process payroll for all of their employees.
• Features: The software or service should include all aspects of processing payroll. This includes calculating paychecks, printing paychecks, or making direct deposit payments, as well as the ability to file and pay payroll taxes.
• Ease of use: The software or service should be easy to use and not require a bookkeeping or accounting background.
• Customer service: Live customer support should be available 24/7 to answer questions and help troubleshoot issues.
• Customer reviews: Overall, reviews for the payroll product or service should be good.
• Penalty guarantees: The payroll service or provider should take responsibility for any mistakes they have made, including interest and penalties for late filing of tax returns and payments.

Based on these factors, we recommend QuickBooks Desktop Enhanced Payroll because it allows you to maintain payroll in-house for less than half the cost of QuickBooks Desktop Assisted Payroll. Enhanced Payroll makes it easy to calculate paychecks, print checks, and submit direct deposit payments. You can also file payroll tax returns and make tax payments electronically through the software.

Costs: QuickBooks Desktop Payroll Basic vs Enhanced vs Assisted Full Service

QuickBooks Desktop Payroll comes in three pricing tiers consisting of a base fee and per-employee fees. The monthly base fees are $29 for Basic Payroll, $45 for Enhanced Payroll, and $109 for Assisted Full Service Payroll. On top of the base fee, all three QuickBooks Desktop payroll plans charge $2 per employee, per month.

QuickBooks Desktop Basic Payroll Costs

QuickBooks Desktop Basic Payroll costs $29 per month plus an additional $2 per employee, per month versus $45 per month (plus $2 per employee) for Enhanced and $109 per month (plus $2 per employee) for Assisted Full Service. However, the Basic plan does not include any tax forms or year-end forms, like W-2 forms. Unlike Enhanced and Assisted Full Service payroll, you will have to manually complete your payroll tax forms and payments outside of the software or hire a QuickBooks ProAdvisor to do it for you.

QuickBooks Desktop Enhanced Payroll Costs

QuickBooks Desktop Enhanced Payroll costs $45 per month plus $2 per employee, per month, which is about $15 per month more than the Basic plan but a lot less than Assisted Full Service Payroll ($109 per month). In addition to the features included in the Basic plan, you also get all of the tax forms you need, including W-2 forms. Unlike Assisted Full Service, which completes your tax returns for you, you have to complete the tax forms and make tax payments yourself using the software.

QuickBooks Desktop Assisted Full Service Payroll Costs

QuickBooks Desktop Assisted Full Service Payroll costs $109 per month plus $2 per employee, per month versus $45 (plus $2 per employee) for Enhanced and $29 per month (plus $2 per employee) for the Basic plan. For the additional cost, the Assisted Full Service plan only requires that you submit hours worked by employees. Intuit will process paychecks, print checks, submit direct deposits, complete and file your tax returns, and offer a penalty guarantee!

If you’re looking for a more affordable alternative, we recommend Gusto. Gusto goes beyond payroll processing and includes the ability to purchase workers’ comp insurance and set up 401(k) retirement plans directly through the program. You also have a new hire on-boarding tool that allows you to welcome new hires, allows them to use e-sign, and sends them direct messages through the program. Get started with a free 30-day trial.

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Features: QuickBooks Desktop Payroll Basic vs Enhanced vs Assisted Full Service

All three versions of QuickBooks Desktop Payroll allow you to create paychecks, calculate tax withholdings, pay employees by check or direct deposit, and generate payroll reports. Enhanced payroll goes a step further than Basic to include all payroll tax forms and the ability to submit tax forms and payments electronically. With Assisted Full Service Payroll, you only need to submit employee hours and Intuit will calculate paychecks, file tax forms, and make tax payments on your behalf.

QuickBooks Desktop Basic Payroll Features

With Basic Payroll, businesses can create paychecks for salaried and hourly employees, calculate payroll taxes and deductions, and pay employees either by direct deposit or check. Basic Payroll tracks vacation and sick time, cash advances, retirement contributions, and insurance deductions. However, Basic Payroll cannot prepare payroll tax forms or create year-end W-2 and 1099 forms.

The features of QuickBooks Desktop Basic Payroll include:

• Create paychecks: Calculates gross pay for both hourly and salaried employees based on hours worked.
• Direct deposit: Submit direct deposit payments at no additional charge.
• View pay stubs online: Give employees access to view and print their own pay stubs through an online portal.
• Employee benefits: Accrue sick and vacation time, track paid time off, and calculate and track deductions for insurance benefits and retirement plans.
• Payroll tax reports: Generate detailed reports for federal and state payroll taxes.
• Payroll tax forms: Prepare your own federal and state payroll tax forms outside of QuickBooks. Basic Payroll does not include tax forms like Enhanced and Assisted payroll do.
• E-pay: Arrange tax payments for federal and state payroll taxes outside of QuickBooks. Basic payroll does not include this feature like the Enhanced and Assisted payroll plans do.

QuickBooks Desktop Basic payroll is ideal for a small business that needs a software that will allow them to calculate payroll checks, print paychecks, and submit direct deposit payments. Since it does not include W-2 forms or payroll tax forms, you will need to have your CPA or tax professional take care of filing and making the payroll tax payments manually.

QuickBooks Desktop Enhanced Payroll Features

Similar to Basic Payroll, Enhanced Payroll can create paychecks, calculate payroll taxes and deductions, and pay employees by direct deposit or check. Enhanced Payroll also prepares federal and state payroll tax forms and year-end W-2 and 1099 forms, which are features missing from Basic Payroll. Enhanced Payroll can also schedule electronic payments of payroll taxes.

The features of QuickBooks Desktop Enhanced Payroll include:

• Create paychecks: Automatically calculates gross pay based on hours worked for both hourly and salaried employees.
• Direct deposit: Submit direct deposit payments at no additional charge with Enhanced Payroll.
• View pay stubs online: Grant employees access to view and print their pay stubs through an online payroll portal.
• Employee benefits: Accrue sick and vacation time, track paid time off, and calculate and track deductions for insurance benefits and retirement plans.
• Payroll tax reports: Create detailed reports for federal and state payroll taxes.
• Payroll tax forms: Prepare and e-file federal and state payroll tax forms such as 940, 941, W-2, and 1099-MISC.
• E-pay: Set up electronic payment of federal and state payroll tax deposits.

QuickBooks Desktop Enhanced payroll includes the features found in the Basic plan plus the ability to generate payroll tax forms and file and make electronic payroll tax payments. This plan is ideal for the small business owner who wants to keep payroll in-house at an affordable cost.

QuickBooks Desktop Full Service Payroll Features

QuickBooks Desktop Assisted Full Service Payroll features professionally-prepared payroll tax returns. Assisted Full Service Payroll comes with a guarantee that payroll tax returns will be filed on time and payroll tax payments will be made on time, thereby eliminating late penalties. Similar to Basic and Enhanced, Assisted Full Service Payroll can create paychecks and reports.

The features of QuickBooks Desktop Assisted Full Service Payroll include:

• Create paychecks: Calculate paychecks for both hourly and salaried employees based on hours worked.
• Direct deposit: Offer employees a direct deposit option at no additional charge.
• View pay stubs online: Allow employees to view and print their own pay stubs through an online website.
• Employee benefits: Accrue sick and vacation time, track paid time off, and calculate and track deductions for insurance benefits and retirement plans.
• Payroll tax reports: Easily generate reports for federal and state payroll taxes.
• Payroll tax forms: Access professionally prepared federal and state payroll tax forms such as 940, 941, W-2, and 1099 (this feature is available only with Assisted Full Service Payroll).
• E-pay: Electronic payment of federal and state payroll tax deposits is set up for you.
• Payroll setup: Payroll accounting, chart of accounts, and reports are set up for you by Intuit’s accountants.
• No-penalty guarantee: Avoid penalties with the no-penalty guarantee included with Assisted Full Service Payroll. Intuit guarantees payroll tax forms are prepared accurately and filed on time.

QuickBooks Desktop Full Service payroll is ideal for the small business owner who prefers to outsource payroll to a payroll expert. With this plan, you only need to submit the hours worked for employees each pay period and Intuit will do the rest. This service includes the initial payroll setup, processing paychecks, printing paychecks, submitting direct deposit payments, and filing and making payroll tax payments.

Ease of Use: QuickBooks Desktop Payroll Basic vs Enhanced vs Assisted Full Service

QuickBooks Assisted Full Service Payroll is the easiest to use, as customers just enter hours worked by employees, and Intuit’s accountants do the rest. QuickBooks Enhanced Payroll is more hands-on, and tools for creating payroll tax forms and making tax payments are straightforward. Of the three options, QuickBooks Basic Payroll requires the most significant effort because you cannot complete tax forms or make tax payments within the software. Therefore, you will have to complete the tax forms and make tax payments yourself or hire a CPA to do it.

QuickBooks Desktop Basic Payroll Ease of Use

QuickBooks Desktop Basic Payroll has self-explanatory, on-screen tools that guide customers step by step through the process of configuring payroll settings, setting up new employees, and paying employees. Preparing payroll tax returns is a manual process done outside of Basic Payroll, which is not as easy as the payroll tax form tools provided by Enhanced Payroll.

QuickBooks Desktop Enhanced Payroll Ease of Use

QuickBooks Desktop Enhanced Payroll has the same in-depth tools as Basic Payroll, which guide customers through the process of setting up new employees and paying employees. Step-by-step tools for paying payroll taxes and preparing quarterly and annual payroll tax forms is much easier in Enhanced Payroll compared to the manual process in Basic Payroll.

QuickBooks Desktop Assisted Full Service Payroll Ease of Use

QuickBooks Desktop Assisted Full Service Payroll is the easiest to use of the three QuickBooks Desktop payroll options. All you need to do is enter the employee’s hours and review the payroll data. Customers don’t need to fiddle with the payroll settings or prepare tax forms, as Intuit’s professional accountants do those tasks for you.

Customer Service: QuickBooks Desktop Payroll Basic vs Enhanced vs Assisted Full Service

All three QuickBooks Desktop Payroll plans include several resources you can use to get help. Similar to QuickBooks Online, all three plans include unlimited live customer support through telephone or chat. Plus, email support is available and support to close out the year is available in all three plans, at no additional charge.

QuickBooks Desktop Basic Payroll Customer Service

As mentioned, QuickBooks Desktop Basic payroll includes unlimited live customer support. You can reach the support team via telephone or chat. There is a dedicated email address that you can use to submit questions that are not urgent. Plus, you can access a searchable online knowledge base if you prefer to figure things out on your own.

QuickBooks Desktop Enhanced Payroll Customer Service

Like QuickBooks Desktop Basic payroll, QuickBooks Desktop Enhanced includes unlimited live customer support via telephone or chat. You can also email the support team or access their online knowledge database to locate an answer to your question.

QuickBooks Desktop Assisted Full Service Payroll Customer Service

Similar to QuickBooks Desktop Basic and Enhanced Payroll plans, QuickBooks Desktop Assisted Full Service plan includes unlimited tech support. Depending on your preference, you can reach the support team by phone or via chat. Self-service options such as a knowledge database and frequently asked questions (FAQs) are also available.

Customer Reviews: QuickBooks Desktop Payroll Basic vs Enhanced vs Full Service

Overall, customer reviews are mixed about QuickBooks Desktop payroll products. Positive reviews center around how easy QuickBooks Desktop payroll software is to use. Negative reviews revealed that there is room for improvement when it comes to the quality of the customer support team. Read all reviews of QuickBooks Desktop Payroll to learn more.

QuickBooks Desktop Basic Payroll Customer Reviews

Customers like that QuickBooks Desktop Basic Payroll is efficient and simple to figure out. However, customers report that it’s very hard to correct mistakes made on previous paychecks. Customers have also complained that they are still charged monthly fees despite canceling their payroll service. Users report problems configuring payroll on the Mac version of QuickBooks Desktop.

QuickBooks Desktop Enhanced Payroll Customer Reviews

Customers like how QuickBooks Desktop Enhanced Payroll eliminates unnecessary steps and saves time completing payroll tasks. However, one customer says QuickBooks Desktop Payroll cannot properly handle state payroll deductions for employees who work in different states. Several customers report that Enhanced Payroll did not pay payroll taxes, even though money was withdrawn from the business’ bank account.

QuickBooks Desktop Assisted Full Service Payroll Customer Reviews

QuickBooks Desktop Assisted customers like the fact that this plan allows them to outsource their payroll processing so that they can focus on other areas of their business. Positive reviews like the fact that Intuit takes care of payroll and files payroll taxes and forms on time without bothering them. Negative customer reviews said that this service is a bit pricey but well worth it.

Bottom Line: QuickBooks Desktop Payroll Services

QuickBooks Desktop users have three options for adding payroll functionality.

Basic Payroll provides minimal functionality for calculating paychecks and payroll taxes. Enhanced Payroll provides a complete set of payroll functions for preparing and filing tax forms. Assisted Full Service Payroll takes payroll off your “to do” list by taking care of processing paychecks, filing and making payroll tax payments, and providing a no-penalty guarantee.

We recommend QuickBooks Desktop Enhanced Payroll. It has all the tools business owners need to create paychecks, prepare payroll tax returns, and send payroll tax payments. We would love to hear which payroll service you decided to go with and why.

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