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Established Member

How do i record the money i pay myself

QuickBooks says not to pay myself as a wage on Self Employed. How then should I record the money that I pay myself from the business?

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Best answer 12-05-2018

Accepted Solutions
QuickBooks Team

Re: How do i record the money i pay myself

Hi Sophiel

 

You can record this as a business expense in the Self Employed product when adding the transaction in if you select wages and other staff costs as the category it will then show as an allowable business expense in the Self-Assessment summary in the taxes section.

 

Any questions at all let us know

 

Kind regards

 

Emma

10 REPLIES 10
QuickBooks Team

Re: How do i record the money i pay myself

Hi Sophiel

 

You can record this as a business expense in the Self Employed product when adding the transaction in if you select wages and other staff costs as the category it will then show as an allowable business expense in the Self-Assessment summary in the taxes section.

 

Any questions at all let us know

 

Kind regards

 

Emma

Experienced Member

Re: How do i record the money i pay myself

I just purchased the self employed product and I don't have a "wages and other staff costs" category.  I just would like to see where I can categorize paying myself. I have no employees. 

QuickBooks Team

Re: How do i record the money i pay myself

What region of QBSE have you purchased?

 

I've just checked mine, and Wages and other staff costs are right at the bottom of the list after selecting it as a business expense on the transactions page.

Experienced Member

Re: How do i record the money i pay myself

Im in the US, hope that helps

QuickBooks Team

Re: How do i record the money i pay myself

I'm going to direct this post over to one of my US Counterparts, they'll be better equipped to help, they'll post here next.

QuickBooks Team

Re: How do i record the money i pay myself

Hello there, jc19.

 

I'm glad to have you here in the Community space. I can share some insights about the account you need to select.

 

For US users, you will have to select the Owner's Withdrawal. This is the equivalence of the Wages and other staff costs category for the UK. 

 

You have to use the Owner's Withdrawal category for withdrawals from your self-employed finances for your own personal use. This type of transaction is a "transfer," so it's excluded from our calculations for estimated taxes or business expenses.

 

Let me know if there's anything else you need about QBSE. I'm still here to help you more.

Experienced Member

Re: How do i record the money i pay myself

thanks!, but what about paying myself a paycheck? As I understand it, I can take an owner draw, and also pay myself a paycheck, which are taxed differently. is there a way to categorize that I  paid myself as an employee vs paying myself from an owner draw?

QuickBooks Team

Re: How do i record the money i pay myself

Welcome back to the Online Community, jc19.


I’m here to clarify about categorizing a paycheck and owner’s draw.


Currently, the option to categorize personal wages in QBSE is unavailable. As @HoneyLynn_G mentioned, you’ll have to use the Owner's Withdrawal category for withdrawals from your self-employed finances.


To properly track your salaries and owner’s draw, you may want to consider switching over to QBO Payroll. You can sign up for a 30-day free trial or access the sample company to see how QuickBooks Online works.

 

Please visit this website for more information: https://quickbooks.intuit.com/uk/online/.

 

That should get you on the right track.

 

Be sure to let me know if you have any questions about QuickBooks. I'll be right here to help. Wishing you the best.

Experienced Member

Re: How do i record the money i pay myself

Does this not deduct from the profits? 

Experienced Member

Re: How do i record the money i pay myself

Hi, I've been paying myself but categorising it as wages and other staff costs - How to I change it so that it's marked as self employed product? Kind Regards, Rhon