Before we discuss how to cancel QuickBooks Payroll, let us quickly look at its importance. QuickBooks Payroll is an important part of the QuickBooks Suite. This is because businesses depend on it to manage their employee base, and the salaries which are owed to them.
Payment of salaries to the employees on time is an essential aspect of maintaining any business. Not doing so would lead to lack of motivation amongst them. It could also cause issues with legal compliance, and invite the attention of the federal or the state authorities.
Although, at times, businesses might choose to do away with their QuickBooks Payroll. The most likely reason for this is that they wish to opt for a different payroll provider. In this guide, we shall look at how you can cancel QuickBooks payroll in a few easy steps.
What happens when you decide to cancel QuickBooks Payroll?
In QuickBooks, payroll service happens to be an add-on application that can be integrated within the software, in order to complete all the functions. The user has the option to opt for third-party payroll providers. Alternatively, they might use the subscription of the Intuit payroll services.
Of course, the recommendation is to contact QuickBooks Payroll Support whenever it is so required. The payroll feature is automatically renewed once subscribed to. The user has the option of doing away with the auto renewal option if they wish to.
Typically, it is seen that the user opts out of auto-renewal of payroll subscription when the following services are not required:
- Printing of forms like W-2s.
- Generating employee paychecks.
- Generating quarterly state forms.
Why would one decide to cancel QuickBooks Payroll?
Before we look at the actual process to cancel QuickBooks Payroll, we can quickly understand the main motivations that an entrepreneur might have for doing so. They are discussed as follows:
Changing Payroll Providers: As has been mentioned, there are several payroll providers available online. The user might realize that some of them are more suited for the needs of their business, or are more budget friendly.
Business Restructuring: This would usually lead to removal of payroll services in the case of downsizing. In the case of removal of employees, the payroll can now be done manually.
Budget Constraints: There might be a downturn in business, and this may cause the manager to relax some of their expenditures. This could cause cut down of budget in the case of payroll.
In-house Payroll: You might have decided to handle payroll processing in-house, which eliminates the need for an external payroll provider like QuickBooks Payroll.
Following the Actual Process
In case the user wants to cancel QuickBooks Payroll subscription, these are the steps to be followed:
- Confirm that you are the Company Administrator
Navigate to the settings option. Find the ‘Manage Users’ option and tap on it. In order to confirm that you are an administrator, log in and search for the username.
- Before doing away with the payroll software, you need to ensure that all the necessary work has been completed. The final payroll may be printed before being processed. Also, pending tax items need to be cleared. Finally, the quarterly or yearly forms may be differentiated.
- Access QuickBooks, and sign in to your account. Go to the Locations option, discover “Other Services” and click on Settings. Select Billing Subscription, and then click on Payroll. Once you got to Payroll Details tab, you shall be able to see the enrolment data for the employees of the company.
- Go to the settings option and click on ‘Account and Settings’. Press on Billing Subscription. Go to the Payroll tab, and click on cancel. There will be an option that you need to press ‘Cancel your subscription’. There would be a short survey which appears; after you have completed it, you can select ‘Cancel Payroll Service’.
Important Considerations Before Cancelling
Before you initiate the cancellation process, there are a few crucial factors to consider:
Contract Terms: Review your QuickBooks Payroll contract to understand any cancellation fees, notice periods, or other terms that may apply. Being aware of these details will help you plan the cancellation more effectively.
Data Backup: Ensure that you have a complete backup of all payroll data, including employee information, pay history, tax documents, and other relevant records. You may need this information for compliance purposes or future reference.
Alternative Solutions: Before canceling, have an alternative payroll solution in place. Whether it’s a new payroll provider or an in-house payroll system, ensure it’s ready to take over seamlessly to avoid disruptions.
Employee Communication: Notify your employees in advance about the upcoming change in payroll processing. It’s crucial to maintain transparency and provide clear information about how their payroll will be managed moving forward.
In this article, we have discussed some aspects related to cancellation of payroll services in QuickBooks. We have also looked at some of the possible motivations of users for doing the same. In case the user faces any issues with the process, they can contact QuickBooks Payroll Support for the purpose.