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QuickBooks Online Payroll Subscription for Small Businesses

• 
• By Jonathan Browns
• Jan 31, 2026
• Accounting
• QuickBooks Online
• 7 min read

Payroll is one of the most important responsibilities for any business, as it ensures employees are paid accurately and on time while meeting tax obligations. Managing payroll manually can be complex and time-consuming, especially with frequent tax updates and compliance requirements. This is why a QuickBooks Online Payroll subscription is required.

The subscription provides automated payroll processing, accurate tax calculations, and timely filing of payroll taxes and forms. It also helps avoid penalties caused by missed deadlines or calculation errors. The following section will help you understand the benefits of the subscription and guide you through using QuickBooks Online Payroll effectively.

What is QuickBooks Online Payroll Subscription?

QuickBooks Online Payroll Subscription is a cloud-based payroll service that allows businesses to pay employees, calculate payroll taxes, and file required tax forms directly within QuickBooks Online.

The subscription is required to access payroll features such as automatic tax calculations, direct deposit, paycheck creation, and tax form filing. It helps businesses stay compliant with federal and state payroll regulations while reducing manual work and payroll errors.

Designed for small and growing businesses, QuickBooks Online Payroll simplifies payroll management by automating routine tasks and keeping payroll data secure and up to date.

Key Features of QuickBooks Online Payroll

QuickBooks Online Payroll comes equipped with a range of powerful features that simplify payroll management for businesses. Below are the key features explained in detail to help you understand how the payroll system works.

• Automated Payroll Processing: Allows you to run payroll in just a few steps by automatically calculating employee wages, deductions, and net pay.
• Accurate Tax Calculations & Filing: Automatically calculates federal and state payroll taxes and files the required forms on your behalf, reducing compliance risks.
• Direct Deposit Payments: Ensures employees are paid on time through secure direct deposit, improving convenience and reliability.
• Payroll Tax Compliance: Keeps payroll aligned with current tax laws and regulations, helping prevent penalties and filing errors.
• Employee Tax Forms Management: Generates, files, and distributes W-2s and 1099s to employees and contractors as required.
• Payroll Reports & Insights: Provides detailed payroll reports to help track labor costs, taxes, and overall payroll expenses.

Subscription Plans and Pricing

Payroll Core and Simple Start Pay your team and get basic accounting tools. $44/mo Save 50% for 3 months* +$6.50/employee per month Intuit Assist/Payroll Agent	Payroll Core and Essentials Pay your team, track billable hours, and pay bills in one place. $62.50/mo Save 50% for 3 months* +$6.50/employee per month Intuit Assist/Payroll Agent	Payroll Premium and Plus Pay your team, get HR & benefits, and track projects or products. $101.50/mo Save 50% for 3 months* +$10/employee per month Intuit Assist/Payroll Agent
Take care of payday 1. Full service payroll 2. 1099 E-File & Pay 3. Next-day direct deposit	Take care of payday 1. Full service payroll 2. 1099 E-File & Pay 3. Next-day direct deposit	Take care of payday 1. Full service payroll 2. 1099 E-File & Pay 3. Next-day direct deposit 4. Same-day direct deposit Track 5. time on the go 6. Expert review
Take care of your team 1. Employee portal 2. Health benefits for your team 3. 401(k) plans 4. Workers’ comp administration	Take care of your team 1. Employee portal 2. Health benefits for your team 3. 401(k) plans 4. Workers’ comp administration	Take care of your team 1. Employee portal 2. Health benefits for your team 3. 401(k) plans 4. Workers’ comp administration
Team management tools 1. Document upload and sharing	Team management tools 1. Document upload and sharing	Team management tools 1. Document upload and sharing 2. Document e-signatures 3. Automated I-9 4. HR support center
Take care of your books Live Expert Assisted (Free for 30 days) 1. Track income & expenses 2. Capture & organize receipts 3. Maximize tax deductions 4. Manage 1099 contractors	Take care of your books Live Expert Assisted (Free for 30 days) 1. Track income & expenses 2. Capture & organize receipts 3. Maximize tax deductions 4. Manage 1099 contractors 5. Connect 3 sales channels 6. Manage bills 7. Enter time 8. Includes 3 users	Take care of your books Live Expert Assisted (Free for 30 days) 1. Track income & expenses 2. Capture & organize receipts 3. Maximize tax deductions 4. Manage 1099 contractors 5. Connect all sales channels 6. Manage bills 7. Enter time 8. Includes 5 users Track project profitability 9. Track inventory

Benefits of QuickBooks Online Subscription

Managing payroll can be time-consuming and stressful, but QuickBooks Online Payroll subscription offers features that make the process easier, faster, and more accurate.

1. Saves Time with Automated Payroll

QuickBooks Online Payroll automates payroll processing so you don’t have to calculate employee pay, deductions, or taxes manually. This saves hours of work every payroll cycle and reduces the stress of complex calculations.

2. Accurate Tax Calculations and Filing

Payroll taxes can be confusing and change frequently. With a subscription, QuickBooks automatically calculates federal and state taxes and can even file returns for you, helping you avoid penalties and errors.

3. Easy Direct Deposit

Employees can be paid quickly and securely through direct deposit. QuickBooks lets you set up schedules so payments go out on time without extra effort each pay period.

4. Better Compliance with Payroll Laws

Payroll rules and tax regulations change often. QuickBooks stays updated with these changes and helps keep your business compliant, so you don’t face fines or legal issues.

5. Employee Tax Forms Made Simple

End‑of‑year tax forms like W‑2s and 1099s are generated and filed within the system, saving you time and ensuring accuracy without extra software or manual work.

6. Insightful Payroll Reports

QuickBooks Online Payroll provides detailed payroll reports that help you track labor costs, tax liabilities, and other important financial data—useful for budgeting and business decisions.

7. Integrated with QuickBooks Accounting

Since the payroll links directly with your QuickBooks Online accounting, all data stays in one place. This integration reduces errors and makes bookkeeping smoother.

8. Access Anytime, Anywhere

Because it’s cloud‑based, you can run payroll, review reports, and manage employees from your computer or mobile device, giving you flexibility and convenience.

How to Set Up and Start with QuickBooks Online Payroll Subscription?

Follow this structured walkthrough to set up QuickBooks Online Payroll accurately and with confidence:

1. Start your payroll setup

• Sign in to your account as the primary admin.
• Navigate to All Apps, then Payroll and select Overview.

With QuickBooks Online Payroll Elite, you can choose to work with one of our experts to set up payroll together—or have them handle it for you. Visit the Expert setup section to call or book an appointment.

• Click on Get Started.
• Choose whether you (or another party) have already paid employees this year.
• Choose the specific date when you wish to start paying your employees using QuickBooks Desktop.
• Type the primary business address. – Provide a physical address (PO Boxes aren’t accepted). The work location determines your tax obligations. – If you have more than one work location, you can add them later when you add your employees.
• Type your primary payroll contact info. – This is typically the person responsible for paying your employees. The payroll contact will receive important payroll notifications from us and may speak with our payroll experts about your payroll account.
• Choose how would you like to run the payroll in the past. – Based on your answer, you may be able to import employee and pay history information instead of entering it manually.
• Now you’ll begin adding your employees.
• If you haven’t paid any employees this year, you can choose to pay them now by paper check if needed, or continue setup and complete the remaining tasks.

– Note: If you choose to pay employees now, you’re responsible for any payroll taxes due until payroll setup is complete. – If you have already paid employees this year, you’ll need to complete additional tasks before you can run payroll.

2. Complete your payroll setup tasks

Payroll setup takes time, so QuickBooks allows you to save progress and come back later. To reach setup tasks:

To access setup tasks:

• Follow this link to complete the steps in the product.
• Choose Start on the task you plan to work on.

3. Add your employees

When adding your employees, you will require the following details:

• Employee’s P45, P60, and any other payroll forms (if applicable)
• Hire date
• Birth date
• Pay rate
• Any payroll deductions (For example, workplace pension, loan repayments)
• Sick, holiday, or PTO accrual rates and balances (if applicable)

4. Enter your tax information

You will require the following when setting up the payroll tax:

• Company legal name and address (found on HMRC correspondence)
• PAYE reference number
• Accounts Office reference number
• Unique Taxpayer Reference (UTR) number
• HMRC login credentials
• Details of any statutory payments or subsidies received

Note: If you process any payroll before this section is finished, you’ll have to handle any tax payments or filing forms they are due. You won’t be able to do this within QuickBooks.

5. Add your payroll history

If you’ve already paid employees during this tax year, enter their cumulative pay information. You can find these details on each employee’s P45.

You’ll need:

• Total pay to date for each employee paid by previous employers this tax year.
• Total tax paid to date for each employee paid by previous employers this tax year.

6. Set up online filing

Ensure your PAYE, Accounts Office, and Unique Taxpayer reference details are accurate to allow you to submit taxes online. Provide confirmation to register for online tax filing.

Conclusion

Finally, this guide explained the key details of the QuickBooks Online Payroll subscription, including its plans, pricing, features, and benefits for small businesses. Using the right payroll subscription helps automate payroll processing, ensure accurate tax calculations, and maintain compliance with payroll regulations.

If you face any issues with payroll setup, subscription management, or tax filings, you can contact BizBooksAdvice. Call Us : +1-866-408-0444 to speak with a certified QB ProAdvisor for professional assistance.

Frequently Asked Questions (FAQ’s)

1. Is QuickBooks payroll free?

Ans. QuickBooks Payroll offers a 30-day free trial, but it isn’t completely free, as continued use requires a paid subscription, additional features may cost extra, and certain services like tax filings or add-ons can generate charges once the trial period ends for growing businesses and teams.

2. How much does QuickBooks Online Payroll cost?

Ans. QuickBooks Online Payroll has three pricing plans. Core starts at about $50/month plus $6.50 per employee, Premium costs around $88/month plus $10 per employee, and Elite is about $134/month plus $12 per employee. Prices may vary with promotions and location.

3. How to add payroll subscription to QuickBooks Online?

Ans. Sign in to QuickBooks Online as the primary admin, click the Gear icon, select Subscriptions and billing, then choose QuickBooks Payroll. Pick a payroll plan and follow the on-screen steps to complete your subscription and start setup.

4. Can I use QuickBooks Online for payroll only?

Ans. Yes — you can purchase QuickBooks Payroll as a standalone service without subscribing to the full QuickBooks Online accounting. However, in most regions you still need a QuickBooks Online account to access the payroll features.

5. What are the benefits of QBO payroll subscription?

Ans. A QBO Payroll subscription offers automated payroll runs, tax calculations and filings, direct deposit for employees, year-end forms (like W-2/1099), employee self-service, and compliance support.

6. Can I use QuickBooks payroll without a subscription?

Ans. No — you cannot use QuickBooks Payroll without an active subscription. QuickBooks offers a free trial for a limited time, but after that you must subscribe to a paid plan to process payroll, access payroll features, and run tax filings.

7. Does QuickBooks Online payroll offer full service payroll?

Ans. Yes — QuickBooks Online Payroll includes full-service payroll, which handles employee pay runs, tax calculations, tax filings and payments, direct deposit, and year-end forms, depending on the plan you choose.