With version 2006 as in previous versions, the first step is to choose the payroll tax table service option. There are three alternatives:
QBRA-2006: Employees > Add Payroll Service > Learn About Payroll Options

The set up process has been re-designed with version 2006 to provide improved step by step instructions and guidance to QuickBooks users. Included is context-sensitive help, a new employee summary screen. The payroll check up as in previous versions is also utilized to help ensure everything has been completed and to reduce the likelihood that errors have been made.
The steps include:
For experienced users, this is a big change from the way that we would typically sign up for the payroll service then dive right into setting up payroll items. Due to changes in the system, it is recommended that the Payroll Set Up wizard be reviewed at a minimum, and used for a new set up. Once the items have been set up through the wizard, it is then possible to edit the Payroll Items as in previous versions.
QBRA-2006: Employees > Payroll Set Up

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