Intuit Introduces Online Payroll Service for Small Businesses

Intuit, the leading financial software company, has introduced a new online service that provides automatic payroll and direct deposit management to users of QuickBooks, its popular small business accounting software. The QuickBooks Online Payroll Service is designed to simplify the complex process of payroll tax filings, tax payments, W2 processing, and direct deposits for small business owners. The service links directly into the payroll features of both QuickBooks 6.0 and QuickBooks Pro 6.0 and provides a convenient and affordable way for small businesses to manage their payroll and direct deposit needs.

Key Takeaways:

• The QuickBooks Online Payroll Service is designed to eliminate the hassle and worry of doing payroll for small businesses, with over 1/3 of small businesses having been penalized by the IRS for inaccurate or late payroll tax filings.
• The service allows small businesses to offer direct deposit benefits to their employees easily and inexpensively, with an estimated cost of $30.00 per month for payroll services and $15.00 per month for direct deposit services (assuming the small business pays their employees twice per month).
• The service is secure, with data transmission files encrypted before being sent over the Internet and payroll data protected with personal identification numbers and security passwords.
• Customers who are not satisfied within the first 90 days of the service will receive a full refund of customer fees, and Intuit will also pay any payroll tax penalties assessed by federal and state governments caused by processing errors.
• The service is available to a limited number of QuickBooks users beginning in September 1998, with a wider availability expected by December 1998.

Statistics:

• Over 1/3 of small businesses have been penalized by the IRS for inaccurate or late payroll tax filings (James J. Heeger, senior vice-president of the small business division at Intuit).
• The estimated annual cost of the service for a small business with 5 employees is approximately $360.00 per year for payroll services and $180.00 per year for direct deposit services.
• The QuickBooks Online Payroll Service is expected to be widely available by December 1998.
• The service will be available to a limited number of QuickBooks users beginning in September 1998.

Sources:

• America's No. 1 Accounting Software Can Now Automatically Manage Payroll and Direct Deposit Services for Small Businesses Intuit(R) Inc. (NASDAQ:INTU) press release, September 15, 1998.
• Jeff Larsen, Intuit Inc., Mountain View, CA, 650/944-5106, jeff_larsen@intuit.com.