How to record Guaranteed Partner Payouts?

Good afternoon, @atenger. 

Congrats on making your first post here in the Community. I appreciate you coming here with your question about recording guaranteed partner payouts. 

First, you'll need to set up your partner as a vendor. From there, you'll set up equity accounts. These accounts will let you see what someone invests and makes from a business. Here's a guide that provides detailed steps on how to perform these actions: 

Add a partner to your books

Afterwards, I recommend consulting with your accountant to record the rest of the information properly based on how your business is ran. 

Reach back out if you have any other questions or concerns. We're always here to lend a helping hand. Take care! 

Thanks @Rainflurry  for confirming my hunch.  I went ahead and created 2 new expense accounts, one for each partner, and will cut checks to my partner using his expense account for his guaranteed payments.

Cheers!

Hello again, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Keep safe and have a great rest of the day.

Can these guaranteed payments be made via direct deposit?

Thanks!

I can provide information about your concern about direct deposit guaranteed payments. GYanez.

It's important to note that the direct deposit feature in QBO Payroll is mainly designed for employee wages. But you also use it to pay your partners if you add them as contractors.

We have a variety of plans that can cater to your needs. You'll need to add your company's bank details and your partner's direct deposit info. 

Once done, check out this article to learn how to process direct deposit to your contractors: Create direct deposit checks. 

Alternatively, you can use QuickBooks Bill Pay to pay vendors via ACH.

Furthermore, you can check this article to get reports on all the money you've paid: Run a report with vendor totals. 

The Community space is always available if you have further questions regarding guaranteed payments. We're always glad to help you.

Hi!  I'm making a new account - Guaranteed Payment - Partner X.  I understand that it is an Expense (account type), but what Detail Type does it then go under?  (The Detail Type seems to also be called the 'Tax Form Section' depending on where you make the new account.)  There is a list to chose from, but none sound right to me.  Thanks!