If you're already using QBO for accounting, consolidating payroll into QBO Payroll eliminates the disconnect between your books and your payroll data. Here's what to know before you make the switch.
When payroll lives inside QBO, wages, taxes, and deductions post directly to your books automatically — no manual journal entries or third-party syncs needed.
Third-party payroll processors can't automatically allocate labor costs to QBO Projects. With QBO Payroll, payroll costs flow directly into project profitability reports.
Employee time tracked in QB Time syncs directly to payroll runs — eliminating double entry and reducing errors for hourly and project-based workforces.
Fewer logins, fewer monthly bills, and one support team to call. Consolidating payroll into QBO reduces the overhead of managing multiple platforms.
Starting January 1 is the cleanest transition. There's no prior YTD data to carry over, W-2s are handled entirely by your new provider, and quarterly 941 filings start fresh. If you have any flexibility, plan for this timing.
Switching at the end of Q1, Q2, or Q3 (March 31, June 30, or September 30) limits the YTD data you need to carry over to one, two, or three quarters. It also aligns with Form 941 quarterly filing deadlines, keeping tax records clean.
If year-end and quarter-end aren't possible, switch immediately after a completed payroll run and before the next one begins. This ensures your old provider fully closes out the most recent period before QBO Payroll takes over — minimizing the risk of duplicate payments or missed filings.
Never switch in the middle of an active pay period. This creates complications with partial-period wage calculations, tax withholdings, and can result in employees being paid from two systems for the same period.
QBO Payroll can import employee and pay history data from ADP. Before switching, export your YTD payroll reports from ADP including wages, taxes withheld, and deductions. Your ProAdvisor or QBO setup wizard will guide the import process.
QBO Payroll supports importing employee and pay history from Paychex. Check your Paychex contract for cancellation terms — some plans have annual commitments. Export all YTD tax and wage reports before ending service.
QBO Payroll can import employee and pay history from Gusto. Since Gusto integrates with QBO for accounting, you may already have some data synced — work with a ProAdvisor to avoid duplicate entries during the transition.
Pull year-to-date wage reports, tax withholding summaries, and employee deduction details. You'll need these to enter accurate YTD figures in QBO Payroll.
Add your company details, tax IDs, pay schedules, and employee records. Use the import tool to bring in employees and pay history from ADP, Paychex, or Gusto where available.
If switching mid-year, manually enter YTD wages and tax withholdings for each employee so QBO Payroll can file accurate quarterly and annual returns.
Before submitting, use QBO Payroll's built-in Preview Payroll option to review employee pay amounts, tax withholdings, and deductions side by side with your current provider's most recent payroll. Only submit and pay employees once everything matches. This is your best opportunity to catch any setup issues before they affect your team's paychecks.
Once your first live payroll runs cleanly in QBO, you're ready to cancel your old provider. Be sure to review your contract for any notice periods or cancellation requirements before doing so.
If you have hourly employees or track time by project, connect QB Time to your payroll. This enables automatic time-to-payroll sync and project labor costing.