CopyrightCopyright © 2006 Intuit Inc.All rights reserved.First printing, December 2006

STATEMENTS IN THIS DOCUMENT REGARDING THIRD-PARTY STANDARDS OR SOFTWARE ARE BASED ON INFORMATION MADE AVAILABLE BY THIRD PARTIES. INTUIT AND ITS AFFILIATES ARE NOT THE SOURCE OF SUCH INFORMATION AND HAVE NOT INDEPENDENTLY VERIFIED SUCH INFORMATION. THE INFORMATION IN THIS DOCUMENT IS SUBJECT TO CHANGE WITHOUT NOTICE.

Trademarks and PatentsIntuit, the Intuit logo, QuickBooks, QuickBase, Quicken, TurboTax, ProSeries, Lacerte, EasyStep, and QuickZoom, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries. Other parties’ trademarks or service marks are the property of their respective owners and should be treated as such. Various QuickBooks products and services may be protected by one or more U.S. patents.

ImportantTerms, conditions, features, service offerings, prices, and hours referenced in this document are subject to change without notice. We at Intuit are committed to bringing you great online services through QuickBooks. Occasionally, we may decide to update our selection and change our service offerings, so please check www.quickbooks.com for the latest information, including pricing and availability, on our products and services.

Service Key_________________________________________

Subscription Number_________________________________

ContentsQuickBooks Enhanced Payroll Features 2How QuickBooks Payroll Works 3The QuickBooks 2007 Payroll Center 4Activating Your Payroll Service 6Entering Your Payroll Service Key in QuickBooks 6Workers’ Compensation 8Paying Employees 10Paying Payroll Taxes and Liabilities 12E-paying Your Payroll Liabilities 14Filing Payroll Taxes 16E-fi ling Your Payroll Liabilities 18Keep Your Tax Tables Up-to-Date 20Overview of QuickBooks Payroll Services 22

Thank you for choosing QuickBooks® Enhanced Payroll.QuickBooks Enhanced Payroll gives you the tools you need to effi ciently manage your payroll. Your subscription provides you with the most up-to-date tax tables and federal and state tax forms, and gives you the fl exibility to process payroll and run customized reports whenever you want. And it’s easy to set up and learn since you do it all from within QuickBooks.

It is important to us that you are completely satisfi ed with QuickBooks Enhanced Payroll. So, we would like to offer you this handy Getting Started and Reference Guide to help familiarize you with our payroll service and help ensure a hassle-free experience. Please keep this guide within easy reach. It can help you through the payroll start-up process and provide answers to many common questions.

Thank you again for subscribing to QuickBooks Enhanced Payroll.

About This GuideThe illustrations and procedures in this Guide are for QuickBooks 2007, however QuickBooks Enhanced Payroll works with QuickBooks 2006 and 2005 as well. For more information regarding setup or use of QuickBooks Enhanced Payroll with earlier versions of QuickBooks, please visit www.quickbooks.com/support

1

2

QuickBooks Enhanced Payroll FeaturesIt’s easy to run payroll with a few clicks and manage activities from at-a-glance screens. QuickBooks Enhanced Payroll gives you automatic calculations and the latest tax tables and forms, helping you run your payroll more effi ciently. Pay your employees with convenient built-in Direct Deposit1, or print paychecks directly from your PC.

Effi cient• Automatically fi lls in state and federal tax forms that are ready to print, sign and mail or

e-fi le2

• Quickly download the latest state and federal tax tables

• Workers’ Compensation tracking allows you to put in the job classifi cation codes and employees’ hours and Enhanced Payroll does the calculations for you

• Rapid time entry allows you to input hours for all employees on a single screen

Easy to Use• Step-by-step guidance makes it easy to set up and get started

• Run payroll in just a few mouse clicks; just enter hours and you’re ready to go

• Payroll taxes and deductions are calculated automatically based on the data your enter

• The QuickBooks Payroll Center lets you manage all your activities from a single at-a-glance screen

• Free unlimited payroll callback support for active subscribers3

Flexible• Pay your employees when and how you want, helping you manage your cash fl ow

effectively

• Run customized payroll reports from QuickBooks any time you like

• Offer Direct Deposit to your employees (scheduled up to 45 days in advance), or print professional-looking paychecks any time you want

Accurate• No double entry for payroll data

• Our team of tax compliance experts monitors federal and state tax changes regularly and update your tax tables for you

• Easily share your payroll data with your accountant

For an overview of the QuickBooks Payroll Services see pages 22-23.

1 Activation required. Transaction fees apply.2 E-fi le & Pay is available with QuickBooks 2007 only.3 Available in the US only. Internet access required.

3

How QuickBooks Payroll Works

QuickBooks Enhanced Payroll is a subscription service that works inside your QuickBooks software.

Setting up and running payroll involves 5 main steps:

➊ Activate and Setup—Activating unlocks the payroll features in your QuickBooks software. Once you’ve activated your subscription, QuickBooks will help you with a step-by-step guided interview to set up your payroll information.

➋ Download Tax Tables and Forms—QuickBooks connects to the internet download the latest federal and state tax tables and forms.

➌ Process Payroll—You can easily enter the time for your hourly employees and salary for your exempt employees directly into QuickBooks. Payroll taxes and liabilities are instantly calculated.

➍ Print Paychecks—Once you’ve reviewed your paychecks, you can print them. Or you can use our convenient Direct Deposit feature, additional fees apply.

➎ Pay and File Your Taxes and Liabilities—QuickBooks Payroll tracks your payroll taxes and other liabilities as you go. Just print, sign and mail your tax filings to the appropriate tax agency. In addition, you can set up your federal and certain state taxes to be paid and filed electronically, directly from QuickBooks.

941 IRS

1. Activate and setup QuickBooks Payroll.

3. Enter employee data in QuickBooks.

4. Print paychecks or use optional Direct Deposit.

5. Pay and file your taxes or let QuickBooks do it for you.

2. Download the latest tax tables and forms.

3

4

Access employee list.

View payroll transactions.

The QuickBooks 2007 Payroll Center

5

We’ve made paying your employees as easy as 1-2-3. Enter hours, review paycheck and print or use convenient direct deposit.

We calculate your payroll liabilities and tell you when they are due so you never miss a deadline. Print and mail checks or pay electronically. (Federal

and certain states.)

We generate most of your state and federal tax forms. You just review, print, sign and mail, or fi le electronically. (Federal and

certain states.)

Access payroll tutorials and useful links.

5

6

Activating Your Payroll ServiceThe fi rst step in doing your payroll in QuickBooks is to activate your payroll service subscription. To activate your payroll service, you must enter your payroll service key in QuickBooks. Entering your key authorizes you to download the latest tax table updates and federal forms.

To get your unique payroll service key:

➊ Open a web browser and go to www.qbpayroll.com/start

➋ Enter the requested information about your company.

• License and Product Numbers (located on the sticker with the CD) • Company name and address • EIN (Employer Identifi cation Number)* • Payroll contact information • Credit Card information to keep your subscription up-to-date

➌ Receive your unique payroll service key and write it down on the first page of this guide.

Entering Your Payroll Service Key in QuickBooks➊ For QuickBooks 2007: Go to the Employees menu, click Payroll, and then click Enter

Payroll Service Key. For QuickBooks 2006: Go to the Employees menu, click Add Payroll Service and then click Activate Service Key. 2005: Go to Employees menu, click Employer Services, and then click Add/Edit Services.

➋ Click Add.

➌ In the Service Key field, enter your payroll service key and click Next.

➍ Click Finish. QuickBooks automatically downloads any necessary payroll updates so you can begin setting up your payroll in QuickBooks.

➎ Once activation is complete, you can begin setting up your payroll. You will need the information in the Payroll Setup Checklist (table at right) to get started. Click on Employees and select Payroll Setup to begin entering your information.

For help during setup, visit the Learning Center. In QuickBooks 2007, go to the Payroll Center and click on Payroll Tutorials in the Learning Resources toolbar.

____________________________Did you know? Your payroll service key is specifi c to you and your business. This number is required for downloading payroll updates and using any of the other Payroll Service features to which you subscribed. Payroll activation is a one-time process. Refer to QuickBooks Help for instructions on adding companies or changing your payroll subscription.

* EIN: If you have not already entered your EIN into QuickBooks, you must add it before activating payroll. From the Company menu, click on Company Information and enter your EIN.

7

Payroll Setup Checklist

To set up QuickBooks Payroll, you will need some of the following information. You can fi nd this information in your own records, from your accountant or QuickBooks Professional Advisor, or from federal and/or state agencies.

Item Examples

Company Information

Pay period frequency or frequencies (i.e., weekly, every other week, twice a month, monthly, quarterly)Date you started or will start using Payroll in QuickBooks

•

•

Compensation, Benefi ts and Miscellaneous Additions and Deductions

Compensation you give employees and offi cers: hourly wages, salaries, commissions, etc.Insurance benefi ts offered, such as health, dental, visionRetirement benefi ts offered, such as 401(k)Additional deductions from net pay that you withhold, such as union dues, repayments of employee advances or loans and life insuranceAdditions you add to a paycheck, such as bonuses, travel reimbursements, employee advances or loans and tips

•

•••

•

Tax Information

State or states for which you fi le payroll taxesYour state employer tax ID number or numbers (EINs)State unemployment tax (SUI) rate(s) for employer and/or employeeState disability (SDI) tax rate or rates (if applicable)Other state tax rates for your company (if applicable)Local income taxes that you withhold or pay on behalf of your employees (if applicable)Whether you qualify for the Federal Unemployment Tax (FUTA) credit

••••••

•

Employees

Employee names, addresses and Social Security numbers from your employees’ Social Security cards or W-4sEmployee withholdings which can also be found on the W-4 formCurrent employee wages/salaries, additions, deductions and company contributionsSick and vacation time policies and hours accrued

•

••

•

Direct Deposit Information

Note: This is an optional feature that requires additional fees. For each employee you want to pay using Direct Deposit, you need bank account and routing numbers. You’ll get this information from your employees when you ask them to fi ll out a Direct Deposit form.

•

Year-to-Date History

Note: You need to enter year-to-date amounts ONLY if you start using QuickBooks Payroll after January 1 of the calendar year.

Quarterly and pay period summaries of employee payroll amounts from the beginning of this calendar year to the beginning of the current quarterPaycheck information from the beginning of the current quarter to today

•

•

Liability Payment Information

Quarterly and pay period summaries of payroll liability payments from the beginning of this year to your start dateCopies of payroll liability checks from the fi rst day of the current quarter until todayPayment and fi ling methodsDeposit frequencies

•

•

••

7

Payroll Setup Checklist

8

Workers’ Compensation

Figure 1 Workers’ Compensation Job Codes

Figure 2 Workers’ Compensation Setup

Workers’ CompensationWorkers’ Compensation is a feature that allows you to track and report your workers compensation premiums in QuickBooks.

Note: You must set up Workers’ Compensation before you run your payroll, or your workers’ compensation reports will be incorrect or incomplete.

To set up Workers’ Compensation:

➊ Go to the Employees menu

➋ Click Workers Compensation

➌ Click Set Up Workers Comp

➍ Complete the wizard to set up Workers’ Compensation.

To pay Workers’ Compensation premiums:

Note: You must pay your workers’ compensation premiums using the payroll liability checks in the Payroll Liabilities window or through the scheduled payments feature. Do not pay them using regular checks in the Write Checks window. Your workers’ compensation premiums accrue as payroll liabilities with every paycheck you create. If you do not pay them using payroll liabilities checks, the liability account in which your workers’ compensation liabilities accrue will never be reduced, and your payroll liabilities balances report will be incorrect.

Pay your Workers’ Compensation premiums as you would any other payroll liability. See “Paying Payroll Taxes and Liabilities” on page 12-13 for more information.

Set UpThe Workers’ Compensation feature can only track your premiums from the time you begin using the feature. There is no way to enter “year-to-date” information for your workers’ compensation premiums.

If you start using the feature in the middle of the year, you will have to combine the information QuickBooks tracks for you with the information you tracked outside of QuickBooks before you started using the feature in order to get the full picture of your workers’ compensation obligations for your insurance year.

Before You Get StartedBe sure to have the following information in front of you before you begin the workers compensation setup wizard:

• The name of your workers’ compensation insurance carrier

• Your policy number (optional)

• Your job classifi cation codes and rates

• Your experience modifi cation factor (if applicable)

9

Workers’ Compensation

Did You Know?

10

Paying Employees

Figure 3 Set up Scheduled Payroll

Figure 4 Enter time for all employees on a single screen

11

Paying EmployeesBefore you can pay your employees, you need to set up a payroll schedule.

Note: This procedure is for QuickBooks 2007. For information on paying employees in other QuickBooks versions, please visit our support website at www.quickbooks.com/support

From the Payroll Center, click Start Scheduled Payroll. You will have two options:

• Click Set Up Now to open the New Payroll Setup window from which you can set up payroll schedules.

• Click Pay Employees to pay your employees using Special Payroll.

• Click Cancel to cancel the message.

As soon as you’ve set up your Scheduled Payroll, you can begin paying employees.

➊ From the Pay Employees section of the Payroll Center, click to select the payroll schedule you want to run, and then click Start Scheduled Payroll.

➋ Make sure the information that appears in the Payroll Information section is correct.

➌ Verify the hours worked and make any changes in the Enter Hours window. (Hours default from the last paycheck.)

➍ Click Continue and the Review and Create Paychecks window opens.

➎ Review the information in the Review and Create Paychecks window and make any changes necessary.

➏ If necessary click the employee’s name to display the employee’s paycheck to make changes.

➐ Choose a printing option

• Click Print Paychecks from QuickBooks to have QuickBooks print the paychecks.

• Click Assign check numbers to handwritten checks to write your paychecks by hand or deposit them directly into the employees’ accounts.

➑ Click Create Paycheck. When you save the paycheck, the Confirmation and Next Steps window opens.

Payroll SchedulesDefi nes when you should run your payroll so that you can pay your employees on a regular payday.

When you use Payroll Schedules, QuickBooks automatically determines the payroll processing dates, taking into account weekends and bank holidays.

You only need to set up your payroll schedules once.

To add an employee to a Payroll Schedule• From the Employees tab

in the Payroll Center, double click the name of the employee to be added.

• In the Change Tabs dropdown box, select Payroll and Compensation Info.

• From the Pay Schedule dropdown box, select the correct pay schedule for this employee.

• Click OK.

Special PayrollTo pay an employee outside of a scheduled payroll (for example, bonuses or terminations), use a Special Payroll.

Payroll Schedules (QuickBooks 2007 only)Defi nes when you should run your payroll so that you can pay your employees on a regular payday.

When you use Payroll Schedules, QuickBooks automatically determines the payroll processing dates, taking into account weekends and bank holidays.

You only need to set up your payroll schedules once.

To add an employee to a Payroll Schedule• From the Employees tab

in the Payroll Center, double click the name of the employee to be added.

• In the Change Tabs dropdown box, select Payroll and Compensation Info.

• From the Pay Schedule dropdown box, select the correct pay schedule for this employee.

• Click OK.

Special PayrollTo pay an employee outside of a scheduled payroll (for example, bonuses or terminations), use a Special Payroll.

11

Paying Employees

Key Term

Paying Payroll Taxes and Liabilities

12

Figure 5 View/Pay Screen

Paying Payroll Taxes and LiabilitiesBefore you pay your payroll liabilities, make sure that you’ve set up scheduled payments for payroll liabilities in the payroll setup interview or by clicking Edit Payment Due Dates/Methods from the Related Payment Activities button in the Payroll Center.

Note: This procedure is for QuickBooks 2007. For information on paying payroll liabilities for other QuickBooks versions, please visit our support website at www.quickbooks.com/support

➊ Go to the Payroll Center. Accrued tax amounts are displayed in the Pay Scheduled Liabilities section of the Payroll Center along with their due dates and current status.

➋ Click the checkbox next to the payments you want to make.

➌ Click View/Pay. For each payment, you may select either E-payment or Check. If you selected more than one payment, the liability checks appear in a check stack.

➍ Review the check details. If you chose to pay by check, click Save & Next. You can review and save all of the liability checks in the check stack. If you chose e-payment, click E-pay to pay this liability, or Skip to view the next payment without paying the current one.

Note: If you chose to e-pay your payroll liabilities, you will have to set up e-payments prior to sending payment to the agency. For instructions on setting up and using e-pay, see pages 14-15.

➎ After the last liability check in the check stack is submitted/created, click Close. A summary window appears. From this window you can print physical checks or print the summary.

➏ Click Close.

Scheduled PaymentsOne or more payroll liabilities that you pay at the same time to the same agency (for instance, in California, unemployment insurance and the employee training tax are both paid to the same agency).

Unscheduled PaymentsYou may pay unscheduled payments such as one-time taxes or fees.

• Click the Related Payment Activities button.

• Click Pay Unscheduled Liabilities.

• Select date range.• Select payroll item.• Create check.

13

Payroll Liabilities

Key Term

14

E-paying Your Payroll Liabilities

Figure 6 E-pay agency login window

E-paying Your Payroll LiabilitiesQuickBooks allows you to electronically pay (e-pay) federal and selected state payroll taxes directly from QuickBooks.

When you set up your scheduled tax payments for e-pay, QuickBooks uses the agency rules and guidelines to track the accrued payroll taxes, display the amounts in the Payroll Center, and remind you when they are due. From the Payroll Center, you submit the payments to the agency and QuickBooks tracks and stores the transaction information.

To select or change payment method, you can click the Related Activities button and select Edit Payment Due Dates/Methods, then follow the instructions in the wizard.

To make an e-payment:

➊ Follow the instructions to pay payroll liabilities on pages 12-13.

➋ When you click View/Pay and the Liability Payment window appears, click the E-payment button.

➌ Review the payment, then click E-pay.

➏ In the Agency Login window, enter your login information

Note: Enter your login details carefully. If you enter your details incorrectly, your e-payment may either be rejected by the agency or not processed in a timely manner.

➐ Click Submit.

➑ Review the information in the E-payment Confirmation window.

➒ After you create your last check or e-payment, the Payment Summary window appears. Review your payments and click Close.

24 to 48 hours after you have fi nished e-paying your liabilities, review the E-payment History screen to ensure that your payments were accepted by the appropriate agencies.

➊ From the Payroll Center, click the Related Payment Activities button.

➋ Click View E-payment History.

➌ In the E-payment History window, review the payments. Any that have not been accepted by the agency will be in red. Click the entry to view the details of the agency’s rejection.

What Happens to the E-payment After It’s Submitted?When you submit an e-payment, the following occurs:

• QuickBooks sends the payment information to Intuit.

• Intuit sends the payment information, in batch mode, to the agency.

• The agency processes the payment and, when accepted by the agency, the agency initiates the ACH debit transaction with the bank account set up for e-payments. (Intuit does not access or hold your funds during the e-payment transaction).

• The agency returns the e-payment status to Intuit.

• When you check the e-payment status, QuickBooks requests the status from Intuit and returns the current status to the E-payment History window.

15

E-payments

Did You Know?

16

Filing Payroll Tax Forms

Figure 7 Select Payroll Tax Form window

Filing Payroll Tax FormsNote: This procedure is for QuickBooks 2007. For information on fi ling payroll taxes for other QuickBooks versions, please visit our support website at www.quickbooks.com/support

To prepare and fi le your payroll tax forms: ➊ Open the Payroll Center by going to the Employees menu

and clicking on Payroll Center, or from the Employee Center, click the Payroll Center tab.

➋ Click Process Payroll Forms in the File Tax Forms section of the Payroll Center.

➌ In the Select Form Type window, select the type of form you want to prepare. QuickBooks exports data into your form and opens the form in the Payroll Tax Form window. Ensure the period reflects the correct tax period.

➍ Follow the onscreen instructions. The instructions are dynamic and depend on the type of payroll form you’re preparing.

➎ Review your form and then click Submit Form.

➏ In the Submit Form window, you may choose to e-file your tax form (applies to certain federal and state tax forms only). To use the e-file feature, follow the instructions on pages 18-19.

Note: You must have a QuickBooks Enhanced Payroll subscription to prepare and fi le certain supported state payroll tax forms.

Payroll Tax FormsWith QuickBooks Enhanced Payroll, you can complete federal forms, including 940, 940 Schedule A, 941, 941 Schedule B, 944, W-2 and W-3.

You can also complete many state tax forms. For a complete list of supported state tax forms, visit www.quickbooks.com/taxforms.

17

Filing Payroll Tax Forms

Key Term

18

E-filing Your Payroll Tax Forms

Figure 8 E-fi ling agency login window

E-filing Your Payroll Tax FormsQuickBooks allows you to electronically fi le (e-fi le) federal and selected state payroll tax forms directly from QuickBooks.

When you set up your payroll tax forms for e-fi le, you can open the payroll tax forms from the Payroll Center, review your data in the Payroll Tax Form window and submit the form to the tax agency. Then, from QuickBooks, you can check the status of your e-fi le submission.

To select or change your fi ling method, click the Related Form Activities drop-down arrow and select Edit Filing Methods, then follow the instructions in the wizard.

To e-fi le a payroll tax form:

➊ Follow the instructions for filing payroll tax forms on pages 16-17.

➋ In the Submit Form window, click E-file or E-file Federal Form. You can print a copy of your finished form from either the Payroll Tax Form window or from the Submit Form window.

Note: If you’re e-fi ling your W-2 or W-3 forms, you are required to print copies for your employees, your state and possibly your local tax agencies. You can print those copies, as well as a copy for your records, after you e-fi le your form.

➌ In the E-file Login window, enter the requested agency login information. The login fields and instructions are dynamic and are unique to the agency to whom you are submitting the form.

Note: Enter your login details carefully. Intuit transmits your login information when sending your payroll tax information to the agency. If you enter your login details incorrectly, your form may either be rejected by the agency or not processed in a timely manner.

➍ Click Submit.

➎ Review the information in the Submitted to Intuit window and click Print Confirmation to print a copy of the confirmation for your records.

What happens when you submit a form electronically? When you submit a form electronically, the following occurs:

• QuickBooks sends the payroll tax form information to Intuit.

• Intuit sends the payroll tax form information and any login details entered, in batch mode, to the agency.

• The agency processes the form and, when accepted and processed by the agency, the agency returns the status to Intuit. The agency also notifi es you if the form is rejected for any reason.

• When you check the e-payment status in the Payroll Center, QuickBooks requests the status from Intuit, who displays the current status in the E-fi ling History window.

19

E-fi ling

Did You Know?

20

Keep Your Tax Tables Up-to-Date

Figure 9 Payroll Update window

Your subscription number is here.

21

Keep Your Tax Tables Up-to-DateBy default, Payroll has Automatic Updates enabled. Having Automatic Updates enabled allows QuickBooks Payroll to check for payroll updates each time you start it so you never miss an updated tax table or form.

Note: This procedure is for QuickBooks 2007. For information on keeping your tax tables up-to-date for other QuickBooks versions, please visit our support website at www.quickbooks.com/support

If you do not have Automatic Updates turned on, you can still keep your QuickBooks Payroll up-to-date:

➊ From the Employees menu, choose Get Payroll Updates.

➋ You have two download options:

•Download only changes and additions to currently installed payroll fi les. This is the fastest option because it downloads only new payroll information. Choose this option for most updates.

•Download entire payroll update. This option takes longer because the entire update is downloaded. Use this option if you have experienced problems updating your payroll.

➌ Click the Update button.

➍ When the download completes, you will receive a message confirming that the update was successful. Be sure to review the Payroll Update News to learn about changes to State and Federal tax rates and forms that may affect your business.

If you experience problems updating your payroll and are unable to complete the update, you may want to check your Internet connection setup.

Active Payroll SubscriptionYou must have an active subscription in order to update your payroll. If you have problems downloading an update, check the following:

• If there is no subscription number listed and you have already subscribed to a payroll service, verify that your subscription number is entered.

• If your subscription status shows inactive, you can update your account information from within QuickBooks. From the Employees menu, choose Payroll Service Activities, and then choose Payroll Service Account Info. Follow the prompts to access your account.

Active Payroll SubscriptionYou must have an active subscription in order to update your payroll. If you have problems downloading an update, check the following:

• If there is no subscription number listed and you have already subscribed to a payroll service, verify that your subscription number is entered.

• If your subscription status shows inactive, you can update your account information from within QuickBooks. From the Employees menu, choose Payroll Service Activities, and then choose Payroll Service Account Info. Follow the prompts to access your account.

21

Update Tax Tables

Key Term

22

Overview of QuickBooks Payroll ServicesThank you for purchasing QuickBooks Enhanced Payroll! This payroll service offers easy-to-use payroll essentials.

We offer a full line of Payroll services designed to meet your business’ specifi c needs. All our payroll services give you the latest tax tables and forms and let you pay your employees with convenient built-in Direct Deposit1 or print paychecks directly from your PC. And all work right from within your QuickBooks software, so there’s nothing new to learn.

If you like doing your entire payroll in-house but need some state forms or other tools such as Workers’ Compensation tracking, we recommend Enhanced Payroll. Enhanced Payroll makes it easy to do your entire payroll in-house. We can help you save time and improve the accuracy of your payroll. Pay your employees with convenient Direct Deposit1 or print paychecks from your PC. Automatically fi ll in the latest federal and state tax tables and forms with QuickBooks data.

If you are new to payroll or have limited time to spend on your payroll, we recommend Assisted Payroll. We take care of your payroll tax deposits and fi lings for you -- guaranteed accurate and on-time2. You keep the control by managing your day-to-day payroll in-house, right from within QuickBooks. Get advanced payroll tools such as Worker’s Compensation tracking and free live phone support for payroll set-up and ongoing payroll tax compliance issues.

You can also customize your Payroll subscription with additional services. One of our most popular is Direct Deposit1. QuickBooks Payroll comes with built-in Direct Deposit—all you need to do is activate it to enjoy the convenience of hassle-free paydays. Deposit your employees’ pay directly into their accounts, no matter where you are on payday. You can schedule it up to 45 days in advance. You are charged only when you use the feature, so there is no need to cancel a subscription.

If you have any questions about your new Enhanced Payroll service, or need guidance on which Payroll service or additional services are right for your needs, please call one of our payroll specialists at 800-624-2106.

1 Direct Deposit requires a currently-supported version of QuickBooks, a QuickBooks Payroll subscription and Internet access. Nominal per transaction and per payroll transmission fees apply.2 “No Penalties” Guarantee: If the data you provide is accurate, on time and your account is suffi ciently funded, your payroll tax deposits and fi lings will be on time and accurate or we’ll pay the resulting payroll tax penalty.

23

EnhancedPayroll

AssistedPayroll

Offer employees convenient Direct Deposit1, or print paychecks yourself right within QuickBooks

X X

Automatically calculate earnings, deductions, federal and state tax payments

X X

Easily download up-to-date tax rates and withholding limits into QuickBooks

X X

Print completed federal forms (includes forms 940/Schedule A, 941/Schedule B, 944, W-2, W-3 and more)

X

Print completed state forms (including Withholdings, Unemployment Insurance, New Hire Reports and more2)

X

Electronically pay taxes and fi le forms for no additional charge3

Prepares and fi les state and federal forms, payroll tax deposits and fi lings done for you by Intuit, guaranteed accurate and on time4

X

Extra time-saving features including Workers’ Comp tracking and more

X X

Ongoing software upgrades for QuickBooks5 with Enhanced Payroll Plus

with Assisted Payroll Plus

Included payroll support for set-up and usageCallback support via web request*

Live phone support

* Available to active payroll subscribers (www.quickbooks.com/callme)

1 Direct Deposit requires a currently supported version of QuickBooks, a QuickBooks Payroll subscription and Internet access. Nominal per transaction and per payroll transmission fees apply.

2 With Enhanced Payroll, state forms available for most states; see www.quickbooks.com/taxforms for complete list of supported forms.

3 Requires QuickBooks 2007 and an active Enhanced Payroll subscription, activation and internet access. E-fi le and Pay is available for federal and select states. Intuit will continue to add support for additional states. Please check availability at www.payroll.com/fi leandpay. You may need to register with tax agencies in order to use E-File and Pay.

4 “No Penalties” Guarantee: if the data you provide is accurate, on time and your account is suffi ciently funded, your payroll tax deposits and fi lings will be on time and accurate or we’ll pay the resulting payroll tax penalty.

5 Assisted Payroll Plus and Enhanced Payroll Plus include ongoing QuickBooks software upgrades as long as your Assisted Payroll Plus or Enhanced Payroll Plus subscription is current. You may choose to cancel this ongoing upgrade option at any time.

Terms, conditions, pricing, features, support and service offerings subject to change without notice.

23