How to set dividend in payroll

Hi, @jill-cpacarolina.

Thanks for posting in the Community. Let me help share some information on how you can set a dividend in payroll.

In QuickBooks Online, you can set up a new payroll item and set a default account for this item. For the account category, please consult your accountant first to make sure what's best for your business.

Here's how to set a payroll item:

1. Go to Workers tab and select Employees.
2. Choose the employee on the Employee list.
3. Click on the Pencil Icon next to Pay.
4. On the Additional pay types, click on the Pencil Icon, and add new pay type. 
5. Click Done when finished.

Here's how to set a default account for this item:

1. Go to Gear Icon and select Payroll Settings.
2. Under Preferences, click Accounting.
3. Choose your preferred Wage Account by clicking on the drop-down arrow.
4. Once done, click OK.

That should do it. You can also contact us if you need assistance in going through the steps. 

I'm here if you have other questions about setting up your payroll. Have a great weekend.