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socksoff93
Level 1

Can officer payroll be separated from employee payroll to make cost of goods sold more accurate?

I am trying to make my COGS account more accurate. We have an S-Corp so myself and husband are employees of the corporation on payroll but our payroll doesn't change like hourly employees do. Is there a way to list the payroll expenses differently?

2 Comments 2
ClaireSamanthaS
QuickBooks Team

Can officer payroll be separated from employee payroll to make cost of goods sold more accurate?

You can set up and pay an owner's draw that would allow you to pay the corporate officers, socksoff.

 

To start, create an Owners' Equity account by following the steps provided below:

 

  1. Go to the Gear icon, then select Chart of Accounts.
  2. Click New, and enter an Account name.
  3. Choose  Equity or Owner’s Equity from the Account type dropdown and select a Detail type.
  4. Enter the Opening Balance and the starting date in the As of field.
  5. You can add a Description to add extra information about this account. 
  6. Select Save

 

Once you have successfully created an Equity account, you're ready to generate a regular check for the officer employee in QuickBooks:

 

  1. Click on + New and choose Check.
  2. Select the Payee from the dropdown menu.
  3. Choose the bank account from which the money will be drawn.
  4. Complete the remaining fields.
  5. Click Save and close.
     

Please feel free to leave a comment below with any other questions; our Community Space is here to assist you.

Rainflurry
Level 15

Can officer payroll be separated from employee payroll to make cost of goods sold more accurate?

@ClaireSamanthaS 

 

Owner's draw applies to sole proprietorships where a single owner is not an employee.  Your customer has an S-Corp, and they are employees of the S-Corp.

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