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staceystandards
February 22, 2021
Question

Wages

  • February 22, 2021
  • 1 reply
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Hi please can someone help me get a clear answer on this topic as it very conflicting the information online. I have quickbooks uk self employed and this is my first year of being self employed so its all very new. I have a cleaning business and there is only me who works, so only myself that I have to pay. I wanted to know what I categories the wages that I pay to myself each month? Does it go down as the wages and staff costs category? Some things online have said to put it as owner withdrawal but then this adds to the 'profit', but its not profit as my profit is what's left after my wage and bills are paid. I want to make sure I get this information correct for when I have to do a self assessment.

 

Thanks

Stacey

1 reply

C
ChristieAnn 11
February 23, 2021

Hi there, staceystandards.

 

Welcome to QuickBooks Community. I'll share some details about categorizing transactions in QuickBooks Self Employed.

 

Since you're the business owner, you can use the owner's withdrawal to categorize wages that you pay to yourself each month. Basically, this is when you move self-employment income to your personal accounts to pay yourself. You'll have to assign the owner's withdrawal category when transfers take money out from your self-employed finances for personal use. With this, QuickBooks Self-Employed doesn't calculate transfers as part of your estimated federal quarterly tax payments. It also doesn't include them as business income or expenses on your financial reports.

 

I'd also suggest consulting your accountant to help you in categorizing your expenses or wages and other transactions. This way, you're able to keep your account accurate.

 

Please refer to the articles below to see steps on how you can edit or re-categorize a transaction. Then, how QBSE uses to track your business income and spending all year long and ready when your taxes are due.

 

 

I'll be here if you have other questions with QuickBooks. Leave a comment below to let me know. Have a good one.

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