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David W Henk
August 4, 2021
Question

payroll items

  • August 4, 2021
  • 1 reply
  • 0 views

I  am  a small landscaping company. I am a sole proprietor DBA.

I have purchase a piece of property to build my office-shop-yard.

I am using my landscaping employees to clear the property, build roads, security fence etc.. In short, I am using my employees for the property improvements.

My CPA wants me to set up a sub category under "Owners Draws" to track these property improvement expenses.  I did, and no problem when recategorizing material expenses and equipment rental expenses. 

Here is my question (finally),

1. Can I set up a separate "Payroll Item" and enter the new sub account under "Owners Draws" to track this payroll expense ?

2. Will my employees payroll tax deductions  and 941 payroll reports be in sync and not have any problems  with this sub category?

1 reply

RenjolynC
RenjolynC
August 4, 2021

Good day, David W Henk.

 

I'd like to share some details about your concern.

 

When setting up a payroll item, you can either add it under the owner's draw account or create another expense account.

 

An owner's draw is an equity account where you can see the draws and investments of the your business. Assigning this as a subaccount to an expense is not possible since they have different account types.

 

To learn more about the owner's draw account in QuickBooks Desktop Payroll, you can read this article: Set up and process an owner's draw account

 

If you have more questions related to payroll or other concerns, simply post a reply below. I'll be right here to help. Have a good ahead. 

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