Final answer:
Using QBO Employee and Payroll involves managing two main aspects: payroll taxes, which include Social Security and Medicare contributions, and employee management, encompassing pay schedules, benefits, and compliance with legal requirements.
Step-by-step explanation:
Main Aspects of Using QBO Employee and Payroll
When using QuickBooks Online (QBO) Employee and Payroll systems, the two main aspects to consider are payroll taxes and employee management. Payroll taxes include mandatory deductions and contributions such as Social Security, which is a 6.2% deduction, and Medicare at 1.45% from an employee's paycheck.
In addition, employers match these contributions; however, economists suggest that the employer's share may result in lower wages for employees, effectively meaning the employee bears the full burden of these taxes.
For independent contractors receiving a 1099 tax statement, they are responsible for both the employee and employer portions of these taxes.
On the employee management side, QBO provides a framework for managing various work-related aspects including pay schedules, timesheets, and attendance tracking. It allows managing overtime, ensuring legal compliance with benefits and safety requirements, and helps coordinate time off such as vacations or sick leave.