How do I account for ownership compensation in PPP expense tracking in QB desktop. Normal procedure is handling everything through capital increases and draws. But for PPP if I write a check to an owner , do I set up an additional account or do I somehow use capital accounts for the process? There are 2 owners, but only one is active from a self employment tax perspective and only one owner will be getting payments. The capital percentages need to stay the same. Therefor using draws against capital would need to be offset with an identical increase in capital.
Follow the article to set up your liability account and it also will show you how to record payments properly to ensure everything is recorded. I'm always here if you need anything else, just leave a reply below.