Why Activate Payroll in QuickBooks Online? Before diving into the steps, let’s quickly cover the benefits of enabling payroll in QuickBooks Online. Having QuickBooks Online Payroll activated allows your business to: Simplify Payroll Management: With QuickBooks Payroll, you can easily run payroll, manage employee benefits, and keep track of employee hours. It simplifies tax calculations, paycheck generation, and direct deposit processing. Ensure Tax Compliance: QuickBooks Online Payroll automatically calculates federal, state, and local taxes for you, helping your business stay compliant with tax regulations. The software also helps with tax filing and year-end reporting, including W-2 forms. Save Time: QuickBooks Online Payroll offers automated features like direct deposit, tax filing, and automatic paycheck calculations, saving your business hours each pay period. Access Employee Insights: With payroll activated, you can easily access your employees’ pay stubs, tax information, and benefits records through the QuickBooks Online dashboard. Streamline HR Functions: QuickBooks Payroll helps manage employee records, benefits, and time tracking all within the QuickBooks ecosystem, eliminating the need for separate HR software.