My S-corp made distribution to sole shareholder, how do I categorize

It is a reduction of equity against the shareholder basis. You can directly record against equity or add a new equity distribution account to track it, just in case you distribute more than the basis and it becomes capital gains to shareholder and not tax free distribution.

The REQUIRED reasonable WAGES that must be paid out prior to distributions are W2 payroll.

Can someone clarify how to input distributions into quickbooks online?

I already run payroll, a reasonable salary and all.  But I need to figure out how to put into quickbooks to keep track of the money coming out.

thanks

Hi Ghram!

You can create a check or a journal entry to record their distributions. However, I recommend consulting an accounting professional on how to categorize them since some businesses track them using retained earnings, liability, or equity accounts.

Feel free to go back to this thread if you have other concerns about your transaction. Take care and have a good one!