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daoud2001
April 3, 2022
Question

Paying myself a salary or making distributions

  • April 3, 2022
  • 1 reply
  • 0 views

I have a  retail pharmacy business,LLC S-corporation.

I used to have an accountant but she isn't doing a good job .

I decided to make my own book keeping so I'm starting with quick books

I need to pay myself a salary, file my income tax and make distribution sometimes

I know I will chooses on of the book keeping packages but I'm not sure if I need to add payroll package or not since I only will pay myself a salary?

Also how can I pay myself a salary on quick books while filing tax and make deductions ?

Thanks

David

1 reply

J
jamespaul
April 3, 2022

Hello, David. 

 

It can be a challenging endeavor to handle your own bookkeeping, but I'm here to point out some information to help you decide on getting the payroll package. 

 

The payroll package does track payroll taxes and you're able to pay yourself through the payroll module. However, deciding on getting the package depends on the IRS' instructions. 

 

Before deciding on getting the payroll module, check with the IRS and see if they allow you to pay yourself through a payroll service.

 

I'd also ask them about the rules and regulations about your tax obligations to avoid penalties and fees. 

 

After getting all of the important details about your taxes and deciding on getting the payroll package, here's how you can pay yourself using the module: 

 

  1. First, add yourself as an employee if you haven't done it yet. 
  2. Next, go to the Payroll menu, then click Run payroll.
  3. Select a pay schedule, then hit Continue.
  4. Check your own employee profile. 
  5. Enter the hours worked or the salary amount. 
  6. Proceed with Preview Payroll.
  7. When you're ready, hit Submit payroll.

 

Also, make sure to set up your Company type correctly in your settings. This ensures QuickBooks uses the correct form when managing your taxes:

 

  1. Click the Gear icon, then select Account and settings.
  2. Go to the Company tab.
  3. Expand the Company type section.
  4. Select the correct form under Tax form.
  5. Hit Save. 

 

When you're ready to handle and manage your taxes, check out this article for a guide: Set up e-file and e-pay in Online Payroll.

 

In case that you decided to use the Self-Employed version, you would want to categorize your salary as an Owner's withdrawal. Here's how: 

 

  1. Go to Transactions.
  2. Click the Add transaction button.
  3. Enter the date, description, amount, and select Business type.
  4. Under CATEGORY AND TAGS, select Personal Withdrawal.

 

If you need to help handling your taxes in the Self-Employed package, I would recommend reading this guide: How QuickBooks Self-Employed tracks self-employment taxes.

 

Need a guide on utilizing the preset reports in QuickBooks? Check out this article for more details: Run reports in QuickBooks Online.

 

Do you have more questions about the features and the tax forms in QuickBooks? Let me know and I'll gladly lend a hand. If you happen to come across any difficulties while recording your entries, fill me in with the details and I'll help you fix them. 

    D
    daoud2001Author
    April 3, 2022

    Hi James 

    thanks for your reply . Are you saying that I don’t be able to handle my book keeping ?

    if not why does quick book exist or at least to make it easier ?

    thanks 

    David 

    G
    GebelAlainaM
    April 3, 2022

    Thanks for getting back to us, @daoud2001. I'm here to provide you some information about QuickBooks Self Employed.

    QuickBooks Self-Employed (QBSE) is designed to help you record your self-employed income and expenses, track mileage, and prepare your Schedule C.

    When you sign up for QuickBooks Self-Employed, you set up your tax profile. This helps QuickBooks make accurate calculations.

    You can refer to this article for more details: how QuickBooks helps you track all of this

    Let me discuss how QBSE keeps track of tax information. QBSE integrates each transaction you record and categorize as part of your federal estimated quarterly tax payments and gives you an estimated amount to pay the IRS for taxes for your self-employed work each quarter.

    QuickBooks Self-Employed additionally categorizes transactions for your annual tax return and Schedule C. QuickBooks has all of your information ready to go when you're ready to file. For the most up-to-date self-employment tax information, go to the IRS Self-Employed Individuals Tax Center.

    If you need further help with your taxes, you can subscribe to Turbo Tax.

    Here are some articles to give you further information about QuickBooks Self-Employed and Turbo tax:
     

    Don't hesitate to post a reply if you have any additional information and clarification on how to navigate your books. I'll be here to assist you anytime. Take care!

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