How do I account for PUA unemployment benefits that I have already had 10% federal taxes withheld from? Can I categorize these as personal payments since tax is withheld?

Could you please give the same solution for categorizing unemployment payments received in Quickbooks Pro instead of Self-Employed?

QueenBee2

Good evening, @QueenBee2. 

I want to make sure you'll get the best help possible concerning the PUA unemployment payments. 

As another option, you can record a bank deposit for this information. Don't worry. It's a simple process. Here's how: 

1. From the "Homepage," pick Record Deposits/ Make Deposits. 
2. Choose the payments and then hit OK. 
3. Select the account you want to put the deposit into from the Deposit to drop-down. 
4. Ensure all the information is correct. 
5. Press Save & Close when ready. 

That's all there is to it! Here's a guide that may be helpful for your business in the future: Payroll 101. 

I want to make sure you're taken care of and able to enjoy your QuickBooks Desktop (QBDT) account. I'm only a post away if you need me. Have a wonderful day! 

Only one issue here is "Payment" is not a category. If you type that in you get these choices:

• Auto Payment
• Credit Card Payment
• Loan Payment

Hello there, NinjaUnmatched.

Are you using QuickBooks Desktop or QuickBooks Self-Employed? 

Self-employment unemployment is personal, not business funds and unless you are depositing the said funds into your business account as an Owner Equity Contribution, you'll want to deposit it to your personal checking/savings account.

In QuickBooks Self-Employed, you can select the closest category the personal tax payments are posted to. You can also check out this link for more details about Schedule C and expense categories in QuickBooks Self-Employed.

QuickBooks Desktop, on the other hand, you can refer to an accountant on how to record PUA unemployment benefits. They can walk you through the correct account and transaction to use that best suits your business preference. 

Feel free to use this link to help you manage tax payments in QuickBooks Desktop. 

Keep me posted if you have other questions and any details on what platform you're using is much appreciated. Take care and stay safe!

I notice how many replies refer to the same link. The schedule C description link only informs on expense categories.  This of course is not an expense. 

I use QBSE. I currently have them Personal with no Category or 'Uncategorized' because frankly not sure where it should go. Only category that fits is 'Income. But I am a tad leary to choose that because I suspect the software will include the amounts for taxes if this is set on them. Taxes are already being taken out. Example would be the PUA....   we all know it's now $300 but the amount shown that you/I get is $261. 

So in the software whether one keeps it Uncategorized or chooses Income under Personal. Will the funds be factored in for tax purposes?   

I really don't wanna leave it Uncategorized for the schedule C sake. 

Hi NinjaUnmatched,

Thanks for joining the thread. I'm happy to share information about the effects of the categories you mentioned on your tax.

The Uncategorized is actually for expenses, and transactions under this category will be reported in your tax summary and estimates. On the other hand, if you tag the transaction as Personal, it will not be included in estimating your taxes.

Here's an article for your additional reference: How QuickBooks Self-Employed tracks self-employment taxes.

I'm just right here if you have further questions. Take care and have a great day!