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userbozz
April 24, 2021
Question

I am the owner but I also need to pay myself as an employee. How can I add myself to payroll (its says I already exist when I try to add an employee)?

  • April 24, 2021
  • 2 replies
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Original commenter did not share additional details

2 replies

Kristine Mae
Kristine Mae
April 24, 2021

Let me help you sort this out, Userbozz.

 

You'll have to set up an owner's draw account instead. It's an equity account to track withdrawals of the company's assets to pay an owner. 

 

For the detailed steps, feel free to check this article: Set up and pay an owner's draw.

 

Get back to this thread if you need more help from us. We're right here to assist you. Take care!

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userbozzAuthor
April 24, 2021

But I thought the IRS expected an owner to pay themselves a "reasonable" salary?

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ReymondO
April 24, 2021

Good day, @userbozz.

 

I'm here to answer your queries in QuickBooks Online. As mentioned above, it's recommended to pay yourself with an owner's draw instead of an employee paycheck.

 

As stated in the IRS guidelines, the procedures for compensating yourself will depend on the type of business structure you elect. 

 

In regards to your concern, it would be best to reach out to your accountant. They can provide you the right information in paying yourself.

 

You can also check out this link from the IRS website for more details: 

https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself

 

Let me know how else I can help you with QuickBooks by adding a comment below. I'm more than happy to lend a helping hand. Keep safe!

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Altalux
February 28, 2023

Apparently, if your name and email are used for the Primary Admin on the account, you cannot enter yourself as an employee. Go to Settings, Your Company, Manage Users and temporarily change the Name and Email under the Primary Admin. QBO will then let you add yourself as an employee, after which you can change the Name and Email of the Primary Admin back to your own without generating an error message.

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    hlnguyen
    July 4, 2023

    This didn't work for me....has anyone found a way around this?

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    BFrancis17
    December 16, 2024

    Add a middle initial to differentiate your name. I have to do this with contractors who are working through their first 90 days before becoming employees on payroll. Their profiles as contractors include a middle initial. When I set them up as employees, I do not use a middle initial. This of course convolutes the use of TSheets if they're using the same email, requiring them to set up a new T Sheets account once they become an employee. 

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