What is Adjusted Service Date in QuickBooks?

When it comes to rehiring employees in QuickBooks, one crucial aspect to consider is the Adjusted Service Date in QuickBooks. This date marks the rehiring of an employee who may have had prior years of service with your company. Rehiring former employees can be a strategic move as they are already familiar with their roles and your company’s culture.

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What is Adjusted Service Date in QuickBooks and How Does It Function?

Many employers consider rehiring employees who were previously laid off. This can be a beneficial choice because these employees are already familiar with their roles and the company’s culture.

If you or your company intends to rehire employees, the first step is to ensure that you reactivate them in your QuickBooks updated account. Additionally, it’s essential to include these employees in your payroll processing. Even though they may appear as active employees on the Employee List, QuickBooks Payroll may not process their payments until your payroll system recognizes that they have been rehired.

How to Reactive the Employee in QuickBooks?

Rehiring employees in QuickBooks is a breeze when you follow these simple steps. Whether you’re using QuickBooks Premier, Pro, or the Simple version, we’ve got you covered. Let’s dive right in and get your talented team members back on board.

In your QuickBooks account, the first step is to locate your list of inactive employees. To do this – 

For QuickBooks premier and pro versions – 

  • Click on the “Employee” tab from the menu bar.
  • Select the “Employee Center” option.
  • Change the “View” option to “All Employees.”

For QuickBooks simple version – 

  • Navigate through the “Payroll” icon.
  • Click on “Go to the Payroll Center.”
  • Choose “View/Edit Employees” from the “Employees” drop-down menu.
  • Right-click on any blank area within the employee list.
  • Select the “Show Inactive Employees” option.

Now that you can see your inactive employees, it’s time to reactivate them:

  • Double-click on the name of the employee you wish to rehire.
  • In the “Edit Employee” window, locate and select the “Employment Info” tab using the “Change tabs” drop-down menu if needed.
  • Ensure you are on the “Employee” tab within the “Edit Employee” window.
  • Remove the “Release Date” from the employee’s record.
  • In the “Hire Date” field, add the rehire date. Be sure to uncheck the “Employee is inactive” checkbox.

Take a moment to review and update the employee’s details in various sections, including:

  • Personal Info
  • Workers’ Compensation
  • Payroll and Compensation Info

In the “Payroll and Compensation Info” tab, it’s time to place your employee back on the payroll – 

  • Click the “Payroll Schedule” drop-down menu.
  • Select the appropriate payroll schedule for the employee.
  • Confirm your selection and click “OK.”

Once you’ve completed these steps, don’t forget to save your changes. By doing so, you’ll successfully reactivate the employee in your QuickBooks account, enabling you to process their payroll efficiently through the QuickBooks payroll service.

Setting Up Employees in QuickBooks

Managing your employees efficiently in QuickBooks is crucial for accurate payroll processing and tax deductions. Adding a new employee to your QuickBooks account is a straightforward process that ensures you have all the necessary information at your fingertips, whether they are full-time, seasonal, or on a visa. Here’s a step-by-step guide to help you set up employees in QuickBooks:

  • Click on the “Employees” tab in your QuickBooks account.
  • Select the “Employee Center” option.
  • Within the Employee Center, click on the “New Employee” option to initiate the setup process.
  • Now, it’s time to enter essential information about the new employee. This includes – 

Personal information – Fill in their name, Social Security number, and other personal details.

Address and contact – Input their address and contact information for easy communication.

Additional info – This section allows you to include any extra details about the employee.

Custom fields – Add any necessary custom fields or use “Define Fields” to tailor information to your specific needs.

  • Navigate to the “Payroll Info” section and input the information pertaining to benefits and compensation. 

Direct deposit – Complete this section if you plan to pay the employee through direct deposit.

Taxes – Determine the employee’s tax status, especially if they are on a Visa. Consult with your accountant or refer to IRS guidelines for accurate tax treatment.

  • Fill in employment-related details in this section, providing a comprehensive picture of the employee’s role within your organization.
  • Once you’ve entered all the necessary information, click the “OK” button to save the employee’s profile in QuickBooks.

Setting Up Employee Defaults and Making Changes in QuickBooks Payroll

Managing employee information efficiently in QuickBooks is essential for smooth payroll processing and accurate record-keeping. QuickBooks offers features to set up employee defaults and make necessary changes when required. Let’s explore how to do both – 

Setting up employee defaults

  • Click on the “Edit” button in your QuickBooks account.
  • Select the “Preferences” option.
  • Click on “Payroll and Employees.”
  • Then, click the “Company Preferences” option.
  • Navigate to the “Employee Defaults” tab and make the necessary additions or changes.
  • Once you’ve configured the defaults, click the “OK” button.

By setting up employee defaults, you ensure that each time you add a new employee, QuickBooks will automatically apply the specified settings, making the process more efficient.

How to Change the Employee Info QuickBooks Payroll?

There are instances where an employee’s details may change, such as their bank account, name, W-4 filing information, or address. Here’s how you can update employee information:

Option 1 – Update employee from the Employee Profile

  • Go to the “Payroll” menu.
  • Click on “Employees.”
  • Select the employee’s name.
  • Hit the “Edit” button in the section you want to update.
  • Edit the information and click “Done.”

Option 2 – Update the employee when you run payroll

  • Navigate to the “Run Payroll” section and click on the employee’s name.
  • Make the necessary edits and click “Done.”

QuickBooks desktop payroll

  • Click on the “Employees” tab.
  • Then, select the “Employee Center” option.
  • Double-click on the name of the employee.
  • Apply the necessary changes and click “OK.”

Intuit online payroll

  • Click on the “Employees” option.
  • Select the employee’s name.
  • Click the “Edit” button in the section you want to update.
  • Click “OK” after making the changes.

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After updating your employees’ details, the changes will be reflected in your payroll account. Additionally, if an employee has moved to another state, you may need to set up payroll taxes for that specific state.

In Advice Venture conclusion, QuickBooks provides a user-friendly platform for managing employee defaults and making necessary Adjusted Service Date in QuickBooks to employee information. Whether you’re rehiring employees or need to update their details, QuickBooks streamlines the process for you, ensuring accurate payroll and compliance with tax regulations.

Frequently Asked Questions

What is adjusted service date in QuickBooks, and why is it important?

The Adjusted Service Date in QuickBooks refers to the rehiring date of an employee, particularly when they have prior years of service with your company. It’s crucial because it helps maintain accurate employee records and ensures seamless payroll processing when rehiring employees.

How do I reactivate an inactive employee in QuickBooks to update their adjusted service date?

To reactivate an inactive employee in QuickBooks, go to the Employee Center, locate the inactive employee, edit their information, remove the release date, and add the rehire date. This process ensures that their Adjusted Service Date is up-to-date.

What steps are involved in setting up or changing an employee’s adjusted service date in QuickBooks?

To set up or change an employee’s Adjusted Service Date in QuickBooks, follow a series of steps that include accessing the Employee Center, editing employee details, and updating the Hire Date. This helps accurately reflect their previous years of service.

Can I use QuickBooks to manage the Adjusted Service Date for employees with complex employment histories?

Yes, QuickBooks provides tools to handle the Adjusted Service Date even for employees with complex work histories, such as those who may have been laid off and rehired. You can customize employee records to reflect these changes.

What are the benefits of using the adjusted service date feature in QuickBooks for rehiring employees?

The Adjusted Service Date feature in QuickBooks streamlines the rehiring process by maintaining accurate employment history, ensuring proper payroll calculations, and simplifying the management of familiar employees who return to your company.

Are there any limitations or specific considerations for adjusting service dates in QuickBooks for certain states or payroll versions?

Some states and specific QuickBooks payroll versions may have limitations or variations in handling Adjusted Service Dates. It’s essential to be aware of these specifics, especially if you’re operating in states like Wyoming and Indiana.

How can I ensure that my payroll system recognizes the Adjusted Service Date for rehired employees?

To ensure that your payroll system recognizes the Adjusted Service Date for rehired employees, follow the steps to reactivate them in QuickBooks and add them to the appropriate payroll schedule. This ensures they are paid accurately through QuickBooks Payroll.

What is the significance of maintaining an accurate Adjusted Service Date in QuickBooks for payroll compliance and reporting purposes?

Maintaining an accurate Adjusted Service Date in QuickBooks is crucial for payroll compliance, tax reporting, and employee benefits calculation. It helps ensure that you’re following legal requirements and providing accurate financial records.

Can QuickBooks help me manage rehiring employees who may have different employment statuses or visa conditions?

Yes, QuickBooks allows you to customize employee profiles, including those with varying employment statuses or visa conditions. You can set up specific details in their profiles to accommodate these unique situations.

How can I use QuickBooks to streamline the rehiring pxrocess and make it more efficient for both the employer and employees?

QuickBooks offers a user-friendly platform for rehiring employees, simplifying the process, and ensuring that the Adjusted Service Date is accurate. By following the recommended steps, you can efficiently reintegrate experienced team members into your workforce.

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