What is the correct first step to start the Payroll Setup in QuickBooks?

• A. Home Page > Payroll Setup
• B. File > Payroll
• C. Employees > Payroll Setup
• D. Edit > Preferences

Answer: (C)

To begin configuring payroll, you access payroll setup through the Employees menu. This placement makes sense because payroll settings relate to how employees are paid, so the setup flow lives under the Employees section. Selecting Payroll Setup from that menu launches the guided wizard that covers key steps like wage items, tax settings, and direct deposit, helping you configure payroll before running paychecks. Other paths don’t start the payroll configuration process: using a Home Page path or File menu doesn’t initiate the payroll setup flow, and Edit > Preferences leads to general settings rather than the step-by-step payroll setup.