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Move QuickBooks Desktop Payroll to QuickBooks Online Payroll

When you move QuickBooks Desktop payroll to QuickBooks Online payroll, you gain greater flexibility, accessibility, and real-time updates. Furthermore, you can streamline your payroll processes and save your precious time and money. In this blog, we will show you how to transfer your QB Desktop payroll to the QBO.

Migrating payroll from desktop to Quickbooks online

The first thing you must do is buy a QB Online payroll subscription without accounting. After that, you can prepare your QB Desktop payroll data file to export it to QB Online payroll successfully.

The unique benefit of this process is that you are able to benefit from QB Online Payroll Core, Premium, or Elite while still utilizing QB Desktop data files for accounting purposes.

Let’s quickly explore the entire article to learn detailed steps through which we can export QB Desktop payroll to QB Online payroll.

Do This Before You Export QB Desktop Payroll Data to QBO

Here are the essential steps that you need to follow before you move QuickBooks Desktop payroll to QuickBooks Online payroll:

  • Download and install the most recently issued QuickBooks Desktop updates. This will ensure a smooth transfer of payroll data to QB Online.
  • Purchase the QB Online Payroll Core, Premium, or Elite subscription (without accounting) for your business. This will help you shift your QB Desktop payroll data to the relevant QB Online payroll version effectively.

Now, move to the next section to learn all the comprehensive steps to transferring QB Desktop payroll data to QB Online payroll.

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Steps to Move QuickBooks Desktop Payroll to QuickBooks Online Payroll

You can implement the following steps to seamlessly move QuickBooks Desktop payroll to QuickBooks Online payroll:

Step I: Deactivate All Employees That Are No Longer Working For You 

You need to deactivate QB Desktop payroll for all your employees who have been terminated or are on leave of absence. This will ensure a smooth transfer of the current year’s paycheck information to QB Online. Here’s how to do so:

  • Firstly, access QB Desktop payroll and choose the Employees menu.
  • Go to the Employee Center and open the relevant employee’s profile. 
  • Choose the Employment Info tab and go to the Termination option. In case you have laid off or furloughed the employee, you have to select the Leave of Absence option.

deactivate QB Desktop payroll for all your employees

  • At this point, choose the Termination Type tab and select the status as Terminated or Not On Payroll.
  • Fill up all the essential information such as Release Date, and after that, mark the Employee is inactive checkbox.
  • Click OK when you want to save all the changes.

Now, you have to wait for two or three days before exporting your payroll data to QB Online. This will ensure paycheck data transfer to QuickBooks Online without any hindrances. Go to the next step to move your payroll data to QBO.

Step II: Export QB Desktop Payroll Data to QB Online Payroll 

In this step, you have to choose the relevant QB Desktop payroll data file and start the export process. Here’s how you can do so for different QB Desktop versions:

Case A: For QuickBooks Pro or Premier

  • Firstly, access the QB payroll company data file using admin credentials. 
  • Jump to the Company menu and choose Export Company File to QuickBooks Online.
  • Click Get Started, and after that, you have to tap the Export All Your Company Data option.
  • Choose Continue and start the export process for your payroll data.

Case B: For QuickBooks Enterprise

  • Open QB Enterprise with admin rights and press F2 or Ctrl + 1 on your keyboard.
  • Once you have opened the Product Information window, tap and hold down the Ctrl + B + Q keys on your keyboard.
  • At this point, release the keys and click OK. The export process for the desktop payroll data will now commence. 

Once you have exported your payroll data, move to the following step.

Step III: Move Your Payroll Data to the Relevant QBO Company File

Moving the payroll data to the right QB Online company file is necessary to ensure efficient and flawless data management. Here’s how to do so:

  • First and foremost, open your QB Online payroll with admin credentials.
  • Choose the appropriate QB Online company file to which you want to move your payroll data. 
  • Click Continue and tap Export. After that, wait for the export process to be completed.
  • Once you have finished the export process, you should re-login into the QB Online payroll account with admin credentials to verify your exported data.

Now, let’s see how to move payroll data from previous years to QB Online. 

Step IV: Export Past Year-to-Date (YTD) Payroll Data to QBO

Once you have completed the export process, you might note that some of the payroll data failed to transfer to QB Online. This is primarily because QBO only imports the current year’s payroll data. You need to enter past YTD data for each employee. Here’s how you can do so:

  • Open QB Online and select Payroll, and after that, choose Overview
  • Go to the TO DO section and fill in your business information. After that, click the Let’s Go option.
  • Add all employees, including those that no longer work for you. Set up a paycheck item, deduction, contribution, and all details.
  • Enter the employee’s info and type the correct amount under the ‘How much did you pay [employee] this year?’ option. 
  • You have to provide all the previous pay details under the ‘+Enter [year] prior pay details’ section.
  • Select the time period for the payment. After that, type the amount that you have paid to the employee so far in this year under the ‘Year-to-date totals as of today’ column.
  • You can also enter the total amount that you have paid to the employee for the previous quarters under the ‘Year-to-date totals as of [date]’ column.
  • Finally, repeat all the previous steps for each employee.

Let’s jump to the following step to add company wages for each payday in QB Online payroll.

Step V: Include Your Company Totals For the Current Quarter in QBO

To ensure that you do not exclude any historical paychecks, you need to type in company wages and taxes for each payday in QB Online. Here’s how to do so:

  • Access Payroll and go to Overview. After that, click Add Your Pay History.
  • Click Edit and tap Continue. You should select Company Payroll Totals For This Quarter.
  • Choose Add Pay Date and enter your first paycheck date for the relevant quarter.
  • At this point, type the total amount from each report.
  • Repeat all the previous steps for each pay date. 

In the next step, we will show you how to finish the payroll setup by recording all tax payments. 

Step VI: Complete the QBO Payroll Setup By Recording All Tax Payments

You need to record all the prior tax payments in QB Online payroll to finalize your setup. Here’s how you need to do so:

  • Open QB Online payroll and go to Taxes. After that, select Payroll Tax.
  • Choose the Payments tab and find the relevant tax for which you want to record a payment.
  • Go to the relevant payment and select the Mark as Paid option.
  • Click the ‘Yes, Mark Paid’ box to record the payment.

Sometimes, you might not be able to find the payment in the list. In such a case, you can record the tax payment as described below:

  • Move to Taxes and select Payroll Tax. After that, access the Payments tab.
  • Choose Record Tax Payments (Prior Tax History) and click Add Payment.
  • Go to Tax Type and type all the relevant data, such as period start date, period end date, check number, payment date, memo, and payment amount.
  • Finally, tap Submit Payment to save all the fresh information.

You can now successfully utilize QuickBooks Online payroll for all your business projects.

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Summing Up

In this detailed guide, we showed how you can move QuickBooks Desktop payroll to QuickBooks Online payroll. Hopefully, you can now seamlessly migrate the desktop payroll data to QB Online. If, however, you are still experiencing difficulties or have a query, you can connect with a QB professional for prompt and effective assistance.

General Queries On Moving QB Desktop Payroll to Online

How do I bring my payroll data to QuickBooks Online?

To shift payroll data from QB Desktop to QB Online, you have to first select your payroll data file. After that, you can export it to QB Online and record your tax payments.

What are the benefits of migrating payroll data to QB Online?

You can gain several advantages by moving payroll data to QB Online, such as improved flexibility, faster data management, and reduced errors. Furthermore, you can make sure that you can stay up-to-date with all the latest tax laws and regulations.

What precautions should I follow to ensure seamless transfer of QB Desktop payroll information to Online?

You need to ensure that you have an updated QB Desktop before starting the export of payroll data to QB Online. Furthermore, you need to clear browser cache data and cookies to ensure faster processing of QB Online.

Paul NewmanSEO Editor
Paul Newman, a CPA with 15+ years of experience in QuickBooks, Sage, Xero, and FreshBooks, shares his expertise through a blog, podcast, and courses.
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