Hello Kindly assist me with how I can record a salary payment to a partner in case of a partnership business in quick books

Hi there, accountant-merit. 

Allow me to share some information on how to handle partnership business in QuickBooks. 

If you're a sole proprietor, you can move the money directly and call it an owner's draw instead of a paycheck through payroll.

Before you can pay an owner’s draw, you need to create an Owner’s Equity account first. When creating the account, make sure to select Equity or Owners Equity as the account type.

Here's how to create a new account:

1. Go to the Gear icon and select Chart of Accounts.
2. Click  New. Depending on your account view, you’ll either see a panel labeled New account or New category. 
3. Select the option you see below for the next steps. 

Once ready to pay the owner, create a regular check not through payroll. Also, ensure it affects the Owners Equity account you created above.

Also,  I'd also recommend seeking assistance from your accountant to ensure that your books are accurate and to avoid messing up the data.

In addition, I've included this article that can help you manage your year-end tasks, taxes, and balances in QBO: Year-end guide for QuickBooks Online

Let me know if you have more questions about setting up an owner's draw.  We're always here to assist you more. Stay safe! 

OK, this is the first time I've found out anything on how to pay out owner payments.  I've been bouncing around in help for a while.  Nothing I'm finding there is able to explicate how to handle partnerships where the owners are equity holders. 

If you've got a moment at some point, here's my business setup:

There are two partners, each with equity in the business.

We do consulting and installation work for our customers.  Much of the work we do is designs.

Based on received payments from invoices (got those figured out), I pay the partners according to their hours worked and the customer rate.  I make a payment to each partner on a quarterly basis and we individually file our estimated tax payments at the same time.  At the end of the year the final payments also include a "business profit" amount based on the amount of equity each partner has (IOW the higher the equity the larger the payment).  The business profit is what is left over after all expenses and partner services have been paid.  The goal is to have the business maintain its equity at the same amount as when we started.

So to summarize, in order to record this in Quickbooks I need to create a new account for each partner that is an owner equity account?  And then I can write a check to them individually which is recorded as a partner payment for services which can be tallied up for the annual report. 

Do I have that right?  Please reply when you have a chance.

ML