How do I pay business owner who takes irregular paychecks (in frequency & amount) so taxes are taken out of check and are paid as appropriate?

SheenaWilton · ‎September 27, 2023

Our owner gets paid irregularly. With QBO, I can write the owner a check and charge it to Shareholder Distribution. I can hand enter the amounts and accounts for the various taxes BUT, as far as I can tell, the taxes won’t actually get paid appropriately.

If I pay her as an employee by running payroll, the taxes get taken out and included in the monthly payments to the necessary entities BUT, looks like I can only enter her payroll as weekly, monthly, bi-weekly, etc. Can’t do annually or bi-annually. And, I need to enter her annual salary which is then divided into paychecks. If she wants $30,000, I have to calculate what her gross annual salary would be to give her $30k net monthly. Our accountant recommended specific amounts for the taxes but if I use the payroll module, the taxes are calculated too high. Plus, if she wants a different payroll amount next time, I have to recalculate her gross annual salary.

I was thinking adding her as a contractor might work but since CA employment is so strange with respect to contactors, I thought I may be making a headache for myself in the long run.

Any suggestions would be great!

LeizylM · ‎September 27, 2023

I'd be glad to help you with how to pay a business owner in QuickBooks Online (QBO) Payroll, SheenaWilton.

We can create and send an unscheduled payroll to track your employee's taxes. Here's how:

Select Payroll, then click Employees.
Next, click on Run Payroll.
If applicable, choose the desired payroll schedule, then Continue.
Review or select the Pay period and Pay date.
Choose the employee you'd like to pay.
Select the column, or select Actions ⋮, then Edit paycheck to enter your pay details. You can enter hours, compensation, memos, or any other necessary paycheck info. If you use QuickBooks Time select Review Approved Time.
Click Preview payroll.
Review or select the QuickBooks Bank account to track your payroll.
Choose either Preview payroll details or Submit payroll.
Once done, click Close.

You can check out these links for future references in handling your state taxes:

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day!

View solution in original post

LeizylM · ‎September 27, 2023

I'd be glad to help you with how to pay a business owner in QuickBooks Online (QBO) Payroll, SheenaWilton.

We can create and send an unscheduled payroll to track your employee's taxes. Here's how:

Select Payroll, then click Employees.
Next, click on Run Payroll.
If applicable, choose the desired payroll schedule, then Continue.
Review or select the Pay period and Pay date.
Choose the employee you'd like to pay.
Select the column, or select Actions ⋮, then Edit paycheck to enter your pay details. You can enter hours, compensation, memos, or any other necessary paycheck info. If you use QuickBooks Time select Review Approved Time.
Click Preview payroll.
Review or select the QuickBooks Bank account to track your payroll.
Choose either Preview payroll details or Submit payroll.
Once done, click Close.

You can check out these links for future references in handling your state taxes:

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day!

SheenaWilton · ‎September 29, 2023

Thanks for the assistance. Still can't do exactly what I need to do but at least it's better. Thanks for having my back!

ReymondO · ‎September 29, 2023

Thanks for coming back, @SheenaWilton.

I'm glad that the steps shared by my colleague help you in paying your business owners.

In case you have any other QuickBooks-related concerns, please post them here on the QuickBooks Community page. We'll be more than happy to assist you further.

Topics

Training

Community

Resources

How do I pay business owner who takes irregular paychecks (in frequency & amount) so taxes are taken out of check and are paid as appropriate?