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Level 1

Do you add an owner with commission only to employee list. Charged $4 month for nothing??

 
2 Comments
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QuickBooks Team

Do you add an owner with commission only to employee list. Charged $4 month for nothing??

Hi contactallison,

You're going to want to add the owner even if they're only paid by commission. This is because they're still getting paid, even if it's not on a regular basis. Taxes still have to be recorded for Year To Date reports and Closed Quarter purposes. If you need assistance adding the owner, follow the steps below:

 

1. Sign into QuickBooks.
2. Click the Workers tab.
3. Under Employees, click Add Employee.
4. Fill out the required info accordingly.
5. Make sure to set the pay type to Commission Only.

 

If you need assistance with anything more, let me know. I'm just a few clicks away.

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Community Champion

Do you add an owner with commission only to employee list. Charged $4 month for nothing??

It depends on your entity type. Only a C Corp, Subchapter S, or LLC electing to be taxed as a corporation will ever have (and must have) an owner as an employee. If you fit this description then you must have owner on payroll and they must receive reasonable wage before any non-tax distribution.

 

If you are simply paying a sole proprietor or LLC member a "commission" you are not paying them and they should never (and cannot legally) be an employee of themself.

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