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October 5, 2023
Question

I'm trying to set myself (owner) up for salary checks but qb won't let me add myself as an employee saying that I already exist as a customer or contractor.... I don't

  • October 5, 2023
  • 1 reply
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I'm attempting to set myself as an employee so i can receive a taxed salary.  QB is saying that I already exist as an contractor or customer but I don't.  Not sure where to go from here.

1 reply

Daniela_A
October 5, 2023

Welcome to the Community, @wells225. I appreciate you sharing your detailed concern.

 

There's no need to add the owner as an employee to set up Salary Checks, instead, we can set up and pay an owner's draw.

 

An owner's draw account is an equity account used by QuickBooks Online to track withdrawals of the company's assets to pay an owner. Let's get this setup started. 

 

Initially, you'll want to create an Owner's Equity account first in the Chart of Accounts before you can pay an Owner's draw. Afterward, you're ready to pay the owner, create a regular check-in QuickBooks, not through payroll, and be sure to affect the Owners Equity account you created.

 

Here's how:

 

  1. Go to + New, then select Check.
  2. From the Payee dropdown, select who you want to address the check.
  3. On the Bank Account dropdown, select the account you want the money to come from.
  4. Fill out the rest of the fields accordingly.
  5. (Optional) You can skip this step if you only want to record a check. But if you plan to print the check, you can choose to print it now or later.
  6. Please know that if you need to reuse a check number, uncheck the Print Later checkbox. When you save the check, confirm that you’re aware the check number already exists.
  7.  Then hit Save and close.

 

Lastly, I'm also adding here some articles that you can check out about adding a partner to your books, or recoding an owner's contribution:

 

Please don't hesitate to send a reply if there are any additional questions about paying an owner. Have a lovely day!

 

btks
October 6, 2023

How you pay yourself will depend on your business structure. Sole proprietor,  LLC, corp etc. You only use an owners draw if you are a sole proprietor.

wells225Author
October 6, 2023

This is more of my question.... I'm set up as a S-Corp and am the only owner. From my research (which isn't extensive tbh) an owners draw is basically just transferring money from the business account to my personal account without any taxes being withdrawn.  I'd prefer to have the taxes and everything withdrawn like I'm a regular W-2 employee.  Am I wrong in the way im looking at the owners draw?