payroll accounting

evfleming1 · ‎November 10, 2020

needing to know how to correctly account for partial paycheck. I actually pay myself a standard paycheck as with our standard employees. Here's the tricky part: I have it set up for our BANK to auto deposit a flat $300.00 every week to my personal account from the business account as my paycheck. However, my paycheck is for more than the $300.00 but I never actually receive the full amount. How do I account for the remaining balance?

example: paycheck = $410.00, money withdrawn = $300.00, $110.00 to remain in company bank account for business use.

So, my bank statement shows the $300.00 but my QB payroll shows the $410.00.

john-pero · ‎November 16, 2020

Paying yourself through payroll is only appropriate if you are an S-corp or an LLC electing to be taxed as a corporation. You need to create your own payroll check at the same time you create other employee checks. Include yourself in the payroll schedule. You would gross up the $300 to whatever value it is which adds in all federal state and local taxes. If you have a set amount declared and after taxes it is different than the 300 net you would code the difference to or from an employee advance account or contribute more or less to your FWT.

If you are not an S corp or taxed like one then your weekly $300 is simply owner draw.

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