Hello!
We have a new LLC partnership with two partners as the only employees. The business was started last year, and the partners were paid as W-2 employees and a W-2 was filed. This has been a huge learning curve, and we now know this was a large error. Per the advice from my tax expert on TurboTax, I have been in contact with QuickBooks to essentially void the 2023 checks that were paid to get a new W-2 issued that reflects all zeros.
I still have questions and would appreciate any help:
For 2023
-How should the money that was paid on the paychecks now be recorded in QuickBooks (including the taxes as I am assuming I will have to file to get that money back)
For 2024
-I will void the paychecks (They were written manually). How should I record the money that was paid on these 2024 checks?
We were utilizing QuickBooks Payroll, moving forward will the payroll add on serve us any purpose or should we get rid of it?
The options for pay moving forward are confusing, so we are trying to read and learn to make the best decision. Until this point, we were paying ourselves just minimum wage until the business gets off the ground and we can increase our pay. We do not have any loans or financial backing, so I am not sure if Guaranteed Payments would be our best option at this time because if the money is not there, then the payments will not be able to be made.
To anyone who can give advice - Thank you!!
