Posted: May 25th, 2022
Accounting Computer Programs
Payroll Administration with Quicken
The intent of this paper is to analyze how Quicken, the computer software program, could be used by Payroll Administrators to make their task more automated, accurate and efficient. Intuit’s CEO Scott Cook has often stated that he strongly believes product designers of all the applications sold by his company need to accurately reflect the unmet needs of customers, even those in business (Cook, 2002). He created follow-me-home teams of developers who study how consumers and businesses use their software, so he can engrain into his company’s culture the insights and intelligence needed to make applications that are useful, meaningful and relevant (Singer, 2007). Part of these research studies indicated that both consumers and businesses were interested in Software-as-a-Service (SaaS) approach to delivering applications over the Web (DeFelice, 2008). Since then SaaS as a delivery platform for applications has proven to be one of the most cost-effective there is, with CRM software Company Salesforce.com reaching over $1B in Sales (Katzan, Dowling, 2010). All of these market factors are changing the role of the payroll administrator significantly, freeing them up from drudgery of manual tasks to focus on how to create more value for the companies they work for. This paper evaluates how Quicken contributes to that productivity increase.
The Changing Role of the Payroll Administrator
The core functions that a Payroll Administrator performs include managing the basic payroll calculations and paycheck deductions for federal and state takes, defining how taxation will be reported and making sure the federal government gets their periodic reports of payroll taxes paid. In certain states including California, the payroll administrator must report how much unemployment insurance was paid, how much worker’s compensation was paid or put into an escrow account, and even must corroborate the claims for worker’s compensation. This is a critical issue for roofing companies in California, as roofers have the highest workers’ compensation rates paid, often costing companies in this business tens of thousands of dollars a year in payments to the state. Payroll Administrators are critically important for helping their companies to be in compliance to federal, state and local laws and regulations, and the accuracy of their work can literally make or break a company’s financial future.
In addition to these responsibilities, Payroll Administrators also are often required to manage tracking employee benefits, involuntary deductions, coordinate with finance, human resources, executive management and senior management across all functional areas of their companies to ensure accuracy of pay rates and also provide taxation guidance. They are also extremely important in the areas of outsourcing and offshoring jobs, where they are required to often manage how 1099 MISC Income is reported for subcontractors and contractors employed globally. In companies that have a high percentage of outsourced operations the Payroll Administrator often works with the Director of Payroll to calculate the relative tax advantages of taking work offshore or outsourcing it relative to keeping it in-house. Literally the work of a Payroll Administrator and the staff they are a member of can make the difference between people in the company having jobs or not, or if the decision is made to shift the jobs to outsourcers or offshore to lower priced countries. In small, rapidly growing companies the Payroll Administrator has an excellent chance for advancement as they are often requested to provide financial analysis of the payroll cost breakdowns by employee and department group. The advances in analytics applications is enabling Payroll Administrators to be more adept at presenting their analyses, and as a result they are getting asked to more and more in companies seeking to manage their greatest single cost, which is payroll.
How a Payroll Administrator Would Use Quicken
With an overview of the Payroll Administrator’s role, it’s easy to see why Quicken chose to move in the direction of SaaS as a delivery platform. Time is the most precious commodity a Payroll Administrator has. The flexibility of using Quicken Online Payroll (SaaS) system, the Desktop applications (QuickBooks Payroll Basic & Advanced) or the high-end Payroll Service is critical for getting time-sensitive tasks done quickly. A Payroll Administrator in a small business for example would use the Intuit Online Payroll to either printer paychecks or enable Direct Deposit into employee’s bank accounts (Arar, 2007). This SaaS-based edition of Intuit Online Payroll also integrates to Quicken and QuickBooks financial accounting applications which means the Payroll Administrator would not have to re-key all the payroll data; it could be transferred electronically in a format the Online Payroll could understand and use. As the Payroll Administrator is key to keeping any organization in compliance, Quicken has designed the Intuit Online Payroll to also support automatic preparation of the latest federal and state payroll tax forms and also electronically will pay taxes and file tax forms. This is all managed from a web browser session. The integration to Quicken and QuickBooks is also bidirectional, so the taxes paid can be reported back into a company’s financial statements too. The bottom line is that a Payroll Administrator using Quicken and the SaaS-based Online Payroll will be able to get more accomplished while saving their company money (Schulz, 2009). Payroll Administrators can then also use the analytics features of Quicken and the Online Payroll application to produce reports for senior management as well.
References
Yardena Arar. (2007, November). Quicken’s Business Tools Help it Edge Out Money Plus. PC World, 25(11), 72.
Scott Cook. (2002, October). Software by the numbers. FSB: Fortune Small Business, 12(8), 56-60.
DeFelice, a.. (2008, March). QuickBooks Creator Bets on the Net. Accounting Technology, 24(2), 40.
Katzan, H., & Dowling, W.. (2010). Software-as-a-Service Economics. The Review of Business Information Systems, 14(1), 27-37.
Lunt, Penny. (1995). Banking without leaving the office – Part 2. American Bankers Association. ABA Banking Journal, 87(7), 50.
O’Bannon, I.. (2009, September). Intuit – PayCycle 2008 for Accounting Professionals. CPA Technology Advisor, 19(6), 24.
Schulz, W.. (2009, April). Online Payroll Can Save You Money. Accounting Technology, 25(3), 18-22.
Michael Singer. (2007, February). Intuit Changes With the Times. InformationWeek,
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