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Viridiana1
Level 1

cash payment to employee

How to withdraw cash from the company and pay the amount in cash to an employer? How to record that in quickbooks online payroll and withhold taxes? Do i write myself a check and cash it then pay the employer? I hope this doesn't sound confusing.

1 Comment 1
ReymondO
QuickBooks Team

cash payment to employee

Hi there, @Viridiana1.

 

You can create an owner's draw account to tracks your withdrawals of the company's assets and pay yourself in QuickBooks. Let me show you how:
 

First, create an Equity account:

 

  1. Select the Gear icon at the top, and click Chart of Accounts.
  2. In the Chart of Accounts window, select New.
  3. From the Account Type drop-down, choose Equity.
  4. From the Detail Type drop-down, select Owner’s Equity.
  5. Enter an opening balance, click Save and Close.

 

Once done, you can now write a check from an owner's equity account and pay yourself:
 

  1. Click+ New and select Check.
  2. Add yourself as a payee and select it from the Payee drop-down list.
  3. Choose the bank account where your money will be withdrawn.
  4. Select Print later if you want to print the check.
  5. Fill in the check fields. In the Account field, be sure to choose the Owner's equity account you created. 
  6. Click Save and Close.

 

For more details about this process, please see this link: Set up and pay an owner's draw.

 

You can also pay your expenses using the owner's funds. To get more info, please check out this video: How to pay expenses with owner funds.

 

I'll make sure you're all set. Feel free to get back to me if there's anything else I can assist you with. Have a lovely day!

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