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korissa-nakednu-
Level 1

Is there a way to pay myself as a w-2 employee through quickbooks?

 
1 Comment 1
CharleneMaeF
QuickBooks Team

Is there a way to pay myself as a w-2 employee through quickbooks?

Yes, there is a way, korissa. I'm here to help you pay yourself.

 

In QuickBooks Online (QBO), you'll want to create a manual paycheck to generate a W-2 form. The system will automatically calculate taxes for you.

 

Before proceeding, ensure your payroll settings are configured to monitor your payroll expenses. It is an initial step for identifying which Payroll Expenses or Payroll Liabilities will be shown on your Profit & Loss or Balance Sheet reports. Here's how:

 

  1. Go to the Gear icon and select Payroll Settings.
  2. Scroll down to the Accounting section. Map the correct accounts, then click Save.
  3. After making sure the correct accounts are added, hit Done.

 

Also, make sure to set up your Company type correctly in your settings. This ensures QuickBooks uses the correct form when managing your taxes:

 

  1. Click the Gear icon, then select Account and settings.
  2. Go to the Company tab.
  3. Expand the Company type section.
  4. Select the correct form under Tax form.
  5. Hit Save

 

Once everything is updated, you can start running your payroll.

 

  1. First, add yourself as an employee if you haven't done it yet. 
  2. Next, go to the Payroll menu, then click Run payroll.
  3. Select a pay schedule, then hit Continue.
  4. Check your employee profile. 
  5. Enter the hours worked or the salary amount. 
  6. Proceed with Preview Payroll.
  7. When you're ready, hit Submit payroll.

 

If you need additional help paying yourself and handling your taxes, I recommend consulting an accountant.

 

Finally, I've added this resource that can help you learn more about paying yourself as a business owner: Owner's Draw vs. Salary.

 

Do you have more questions about the features and the tax forms in QuickBooks? Let me know, and I'll gladly lend a hand. If you happen to come across any difficulties while recording your entries, fill me in with the details, and I'll help you fix them. 

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