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Level 1

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 December 05, 2018

Accepted Solutions
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QuickBooks Team

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 owner withdrawal

 

Any questions at all let us know

 

Kind regards

 

Emma

View solution in original post

31 REPLIES 31
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QuickBooks Team

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 owner withdrawal

 

Any questions at all let us know

 

Kind regards

 

Emma

View solution in original post

Highlighted
Level 2

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. 

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QuickBooks Team

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.

 

If you are recording wages you have paid yourself we would recommend using the owner withdrawal category though we are not trained accountants so it is worth confirming this with an accountant or HMRC themselves

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Level 2

How do i record the money i pay myself

Im in the US, hope that helps

QuickBooks Team

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.

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QuickBooks Team

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.

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Level 2

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?

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QuickBooks Team

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.

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Level 1

How do i record the money i pay myself

Does this not deduct from the profits? 

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Level 1

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
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Level 1

How do i record the money i pay myself

I thought that money you pay to yourself from self employment _isn't_ an allowable business expense though?

Highlighted
QuickBooks Team

How do i record the money i pay myself

Hello Simon, 

 

Thanks for reaching out on the Community page, on the Self-Employed QuickBooks the category you would chose when paying yourself is owner withdrawal this does not hit the allowable business expense.   

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Level 1

How do i record the money i pay myself

Thank you for your reply,

However, this then doesn't record it as an expense at all?

Is there a way to record pay to self as an expense which is disallowable for tax purposes but still keep track of it within the Quick books app? 

Also, this is different from the answer given to the original poster of the question. Is the original reply misleading?

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Moderator

How do i record the money i pay myself

Let's record the payment as a Transfer, Simon Lidwell.

 

In QuickBooks Self-Employed, paying yourself is an expense transaction but, considered as transfer. This is still excluded from a tax calculation. Then, the CATEGORY will be Personal withdrawal.

 

Let me guide you with these steps:

 

  1. From the Transactions page, tap Add transactions.
  2. Enter a description, and AMOUNT.
  3. Under the CATEGORY column, select Personal withdrawal.
  4. Click Save.

I've also added this article to know more about the different categories in QuickBooks Self-Employed: Categories in QuickBooks Self-Employed.

 

Feel free to get back to us if you have other concerns.

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Level 1

How do i record the money i pay myself

I agree with Simon. Can we have have definitive answer on this as this thread has several contradictory ones which is confusing?

 

What is the best way of recording wages paid to myself from my business bank account, using Quickbooks Self-Employed?

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QuickBooks Team

How do i record the money i pay myself

Hello OnlyDanno

 

There has been some contradictory answers on this thread we apologise the Community is a multi user platform and also there was a US product user who asked a question in the UK community and the rules are different in the US for Self Employed.

We would always recommend confirming with an accountant if you are unsure.We can refer you to the notes section of HMRC website regarding the SA103 F form itself which we have included a link to here.

It does state that wages and other staff costs should not be used as it will push into allowable (box 19) we apologise for any misinformation on here and we will amend the posts on this thread accordingly

Owner withdrawal would be the category to use though again we would advise to confirm this with either HMRC or an accountant

 

 

Emma

 

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Level 2

How do i record the money i pay myself

Hi,

I'm using QB self employed and I've tried using Transfer - Owner Withdrawal to log my withdrawals to pay my personal 'wages'/personal bills but this doesn't seem to log the total of what I have actually withdrawn as in the image uploaded below. Can you please further advise?

Thanks

 

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Moderator

How do i record the money i pay myself

Hello @DaoNaturalHealth,

 

The information included in the graph (screenshot) on the Transactions page is only your Self-Employed Business transactions. This means that your personal withdrawals and transfers won't affect the digit in the dashboard.

 

Instead, you can pull up your Business and Personal Expenses report so you can review the total of the transfer and withdrawal of your personal expense related transactions.

 

In case you need some ideas about how you can manage your account and transactions, I've got you this helpful article for reference: Help Articles for QuickBooks Self-Employed.

 

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Thanks for dropping by.

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Level 2

How do i record the money i pay myself

Hi,

Thanks so much for your reply, that's great. 

So am I right in saying that I need to log my personal wages/payment to my self as Personal - and Personal Spending rather than Business - Transfer - Owner Withdrawal? This is for UK QBSE.

Thanks again

 

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QuickBooks Team

How do i record the money i pay myself

Hi DaoNaturalHealth

 

You would class money an amount you withdraw from the business account as your wages/salary as owner withdrawal. You would class/categorise an amount you have spent from your business account on a personal purchase as Personal/Personal S[ending..

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Level 2

How do i record the money i pay myself

Hi John,

That's great, thanks so much for clarifying.

Cheers

 

Highlighted
QuickBooks Team

How do i record the money i pay myself

Hi DaoNaturalHealth

 

You are welcome, if you require further assistance please let us know.

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Level 1

How do i record the money i pay myself

Hello, I seen that the Personal Withdrawal or Owner Withdrawal appears as a transfer and there for is not seen deducted as a business expense for taxes.  Why is this and can this be fixed because as owner I am still a paid employee.

Highlighted
Moderator

How do i record the money i pay myself

Hello there, APerkins2020.

 

We can assign the expense to the correct business category. Within the transactions page, locate the transaction that you want to correct and select the right type of this transaction. I would like to include this article. We'll gain further details to accomplish the process. 

 

In QuickBooks Self-employed, we can also add older transactions and can bring data that comes from other sources.

 

I'm here if you need anything else. Take care!