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Simplify payday and set payroll to run automatically on QuickBooks. Explore QuickBooks Payroll

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Rustler
Level 15

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It depends on how the business is taxed, if it is a sole proprietor or a partnership, then income taxes paid or refunded are a personal finance event and do not belong in the business accounting.

 

Regardless a tax payment is not a distribution, ever.

 

If the business is taxed as a c- or s-corp, then you should have a tax paid expense account set up in the chart of accounts, use that

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