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robost
Level 2

Create and record owner's draw paychecks with deductions

I am an independent contractor operating as a sole proprietor with no employees. I want to create a system that will allow me to write regular monthly draw checks with deductions for things such as estimated tax and retirement, with the deducted amounts credited to appropriate accounts. Final check would look like a payroll check, with the gross pay and each deduction listed, each item  recorded in the proper QuickBooks account, and the net pay being the amount of the check. I have QuickBooks Pro 2018. How can I do that?

1 Comment 1
Rea_M
Moderator

Create and record owner's draw paychecks with deductions

Hello there, robost.

 

Let me share details on how you can write regular monthly draw checks with deductions through your QuickBooks Desktop Pro 2018. This way, you can create a final check that looks like a payroll check and monitor your business expenses.

 

You can set up manual payroll in QuickBooks Desktop so you can create a payroll check. It contains the gross pay, complete list of your deductions, and you can record each payroll item to the proper account. Then, you'll have to add yourself as an employee and set up your exemptions.

 

There isn't a need to pay for your subscription with a manual payroll. You'll just have to calculate, enter payroll taxes, and file your tax forms yourself if necessary.

 

To start, please ensure your computer is offline or not connected to the internet. Then, follow these steps to set up your company preferences for payroll:

  1. Go to the Edit menu.
  2. Select Preferences.
  3. Choose Payroll & Employees, then go to the Company Preferences tab.
  4. In the QuickBooks Desktop Payroll Features section, select the Full Payroll radio button.
  5. Select OK.

 

Once done, you can now create the manual payroll. Here's how:

  1. Go to the Help menu.
  2. Select QuickBooks Help (or press F1 on your keyboard).
  3. In the Search field, type manual payroll, then press the Enter key.
  4. Select the topic Calculate payroll manually (without a subscription to QuickBooks Payroll).
  5. Under Set your company file to use the manual payroll calculations setting, click the manual payroll calculations link.
  6. Select Set my company file to use manual calculations link. When your company file is set up for manual payroll computation, QuickBooks inserts a zero amount for each payroll item associated with a tax.
  7. Close and reopen QuickBooks Desktop.

 

Furthermore, in case you want to reinstate payroll tax calculations, you'll have to sign up for QuickBooks Desktop Payroll.

 

Moreover, we also have a separate forum that handles the suggestions from our customers in improving the system. This is the place where developers engage with others to discuss programming issues. With this, I'd recommend posting your question from there so our product developers can consider your suggestion to create a system that'll allow you to write regular monthly draw checks with deductions for independent contractors. Just go to the  Developer's page, then select Ask a Question.

 

In addition, to learn more about the features of QuickBooks Desktop 2018, kindly refer to this article: QuickBooks Desktop for Windows 2018. It contains information about multi-monitor support, cash/accrual toggle, and past due stamp to name a few.

 

Please let me know if you have other concerns. I'm just around to help.

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