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Level 1

If tranfering my wages from my business account to personal(sole trader). how do i record it as a wage so quick books still deducts my tax. rather than an expense

 
2 REPLIES 2
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QuickBooks Team

If tranfering my wages from my business account to personal(sole trader). how do i record it as a wage so quick books still deducts my tax. rather than an expense

Hi there, @igniheat.

 

I'm here to help you achieve your goal in recording your wage into QuickBooks Online.

 

If you've issued a check You'll need to set up your self as an employee to calculate your taxes. If you have a different payroll expense account, you can set this up on your QuickBooks to record your salary.

 

Here's how:

  1. Click on Employees at the left pane.
  2. Click Add employee.
  3. Enter information about the employee.
  4. Click Done.

To give you complete details about setting up an employee in QuickBooks Online, please refer to this article: Add employees in QuickBooks Online

 

Once done, proceed to select the correct payroll expense account where amounts should be posted.

 

To do that:

  1. Click on the Gear icon at the top menu bar.
  2. Select on Accounts and Settings.
  3. Refer to the Payroll section.
  4. Click on the Pencil icon beside Journal Mapping at the bottom.
  5. On the Net pay account section, enter the payroll account to be used in this transaction.
  6. Click on Done.

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Moving forward any payroll transactions will be posted into the account that you've selected for journal mapping.

 

If you need further assistance with this process, you can always reach out to our Customer Care Team

 

You can always reach back out to me if you have any questions about this. I want to ensure you're taken care of. More power to your business!

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Level 15

If tranfering my wages from my business account to personal(sole trader). how do i record it as a wage so quick books still deducts my tax. rather than an expense

@BettyJaneB 

@igniheat 

 

NO

In the UK, it is the same in the US, a sole trader does NOT have a salary.  When a sole trader takes funds from the business, it is an equity draw.

 

@igniheat 

this link explains it

https://www.bytestart.co.uk/sole-trader-tax-guide.html