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Lyndsey6739
Level 1

Sole Trader - Do I add myself to payroll?

I'm hoping someone can help, I've joined quickbooks today and my husband is a soletrader. 

 

We currently employ 1 labourer, I've added him to the payroll, do I add my husband on it too? 

 

Many thanks

1 REPLY 1
ReymondO
QuickBooks Team

Sole Trader - Do I add myself to payroll?

Good day, @Lyndsey6739.

 

Let me provide answers to queries in QuickBooks Online (QBO) Payroll.

 

Since your husband is a sole proprietor, he must be paid with an owner's draw instead of a paycheck through payroll. 

 

Before paying an owner’s draw, you must create an Owner’s Equity account first. Make sure to choose Equity or Owners Equity as the type of account during setup. Here's how:
 

  1. Go to Settings and select Chart of accounts.
  2. Click New and choose Equity.
  3. Select Owner draws and fill out the rest of the info including the account's name
  4. Click Save.

 

When you are ready to pay the owner, create a regular cheque in QuickBooks, not through payroll. 

 

For additional resources, you can check out this article: Business owner salary vs. owner's draw: How to pay yourself as a business owner.

 

That should do it. Please let me know if you need further clarification. I'm always here to help you.

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