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frankysgurl
November 1, 2022
Question

Setting up Owners Draw in a Partnership

  • November 1, 2022
  • 1 reply
  • 0 views

Hello,

 

I am in the process of setting up a company (partnership) and there are no employees as the partners are the only "workers".  CRA advised that you cannot be an employee and pay a salary if you are also the owner.

 

Obviously the owners want to earn a wage and we were advised that to do this you would set up a "owners draw" and not a salary.  How do you set this up and can you set up tax deductions for this (EI, CPP, Income Tax).

 

Thank you

Leah

1 reply

J
JamesM4
November 1, 2022

Hi Leah,

 

Welcome to the Community. QuickBooks is a powerful program that helps you manage your work with peace of mind. I'll be glad to share more info so you're on the right track with your work.

 

Making sure you're recording your transactions properly is an essential step for maintaining clean books. To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on this. If you're not in contact with a professional, don't worry, you can search for one using this link here. In the meantime, feel free to check out the following article here that provides more info about setting up and paying an owner's draw.

 

I'll also leave this question open in the Community so other accountant users can share their advice. Otherwise, feel free to ask other questions, I've got your back.

 

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