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BLKBN
July 10, 2020
Question

Employee Profit Sharing

  • July 10, 2020
  • 1 reply
  • 0 views

I recently incentivized one of my team members with a X% profit-sharing agreement, to be paid out quarterly. 

 

How do I set this up in QB Online? I want to make sure it's recorded properly and paid out properly as well. 

1 reply

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Nick K
July 10, 2020

Hi BLKBN,

 

Making sure you track your payroll items correctly is important to make sure your books and payroll liabilities are correct. I can help point you in the right direction to get this resolved.

 

Due to this having a direct effect on your books I'd suggest contacting with your accountant as they are trained in how to enter these kinds of transactions and what accounts they should affect. If you don't have an accountant currently we can help with that. You can go to our find an accountant page and find one in your area that is able to assist.

 

Once you know which accounts to use to record and track the payments we can assist with how to enter it into your QuickBooks Online account.

 

Have a great night!

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BLKBNAuthor
July 11, 2020

Thanks, but isn't there a way to set this up in QB Online directly without me having to go through my accountant?

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LauraAB
July 13, 2020

I appreciate the follow-up question, BLKBN, and I'd be happy to clarify why my colleague recommended an accountant in this instance.

 

QuickBooks Online and its Payroll modules don't currently have an integrated option for setting up employee profit sharing. Because of that and because there are a number of ways this sort of thing might be set up when it comes to accounting, an accountant is your best resource for determining the correct way to record this in your books.

 

Once you have more information about how this might be set up, the QuickBooks Team can help with letting you know whether what you need to do is possible in your books. For instance, your accountant might decide that this can be set up as a new income type or there might be some other way they'll want you to record it. Having the details of how it's being recommended to set this up specifically will help us with guiding you to do so.

 

If you still need a hand with the QuickBooks side of things after speaking with an accountant, here are the best ways to reach us.

 

Schedule a Callback or Chat: click (?)Help in the upper right > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat

Social Media: Facebook, Twitter, and Instagram

 

Take care!

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