QuickBooks allows employers to select the appropriate display option to comply with your state rules for displaying employee social security numbers on paychecks and pay stubs using the following procedure:

1. In QuickBooks, go to the Edit menu and click Preferences.

2. Click the Payroll & Employees category in the list on the left.

3. Click the Company Preferences tab. (Note: Only the QuickBooks Administrator can change company-wide preferences).

4. Click Pay Stub & Voucher Printing (QuickBooks 2008 and 2007) or Printing Preferences (QuickBooks 2006 and 2005).

5. In the On Paycheck Vouchers and Paystubs, print section, choose the following options to select your printing preference:

• To mask/hide the entire social security number, clear the Employee Social Security number checkbox.

• To display only the last four digits of the employee's social security number, mark the Employee Social Security Number checkbox and mark the Select Only the last four digits of SSNs and bank accounts checkbox.

• To display the entire social security number, mark on the Employee Social Security Number checkbox.

6. Click OK to save your changes and close the Preferences window.

NOTE: If you choose to send your pay stubs by email, the stubs are sent as .pdf files that are NOT password protected. Anyone intercepting your email can view the information on your employee's pay stubs. With the Payroll Updates for QuickBooks 2008 and 2007 being released in mid-December, the .pdf files will automatically be password protected.

For more information about recent state legislation regarding the display of social security numbers on employee documents like paychecks, visit your state's website or click here.