cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Entering W-2 Income and Taxes for Single Member LLC

Hi, I run a single member LLC consulting company.  Normally, I invoice my clients, they will pay me the full amount of the invoice and then I pay quarterly estimated taxes to cover the taxes.  However, one of my clients had me go through a staffing agency and I am receiving W-2 income with taxes removed from the paycheck each week. What is the best way to enter this W-2 income and taxes within QuickBooks Desktop Pro 2017?  Ideally, I'd like the income and taxes paid roll up to any company report so that I can see my total income (1099 and W-2) and the taxes paid (estimated taxes plus taxes withdrawn from these paychecks). Any advice appreciated!

Solved
Best answer 08-06-2019

Accepted Solutions
Level 7

Re: Entering W-2 Income and Taxes for Single Member LLC

Make a deposit and enter the gross amount as income.  Drop down a line and enter the taxes withheld as a negative amount.  Total deposit will be your net check.

 

Note:  Estimated tax payments would usually be recorded as a reduction in your capital account since it is not a business expense, but a personal one.  You can create a current asset account for total taxes paid and once you know your tax bill, reduce the asset account by that amount and credit your equity account.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

View solution in original post

2 Comments
Level 7

Re: Entering W-2 Income and Taxes for Single Member LLC

Make a deposit and enter the gross amount as income.  Drop down a line and enter the taxes withheld as a negative amount.  Total deposit will be your net check.

 

Note:  Estimated tax payments would usually be recorded as a reduction in your capital account since it is not a business expense, but a personal one.  You can create a current asset account for total taxes paid and once you know your tax bill, reduce the asset account by that amount and credit your equity account.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

View solution in original post

Level 1

Re: Entering W-2 Income and Taxes for Single Member LLC

I would post the gross amount as income, then post the payroll taxes to a liability but breakout the FICA, State & Fed. WH to seperate accounts.  So when you get a check do this.

 

4075.00  Income account.....................1000.00

SS.............................................................  ( 66.50) use a liability account

Medicare.................................................  (25.00)   use a liability account

Deposit Account.................................... 908.60

 

These are not accurate amounts, it's just to give you an ideal.  Your CPA should give you adj. entries at the end of the year to bring those liability accounts back to zero.  I would assume they would post a debit to the liability account and post a credit to PR taxes paid for the year (expense account)  and this should agree with the w-2 you get.  Hope this make sense.

Need to get in touch?

Contact us