Owner's Draw vs. Salary (what's the difference?) Payroll distributions in QuickBooks Online

Рет қаралды 7,097

Күн бұрын

Пікірлер: 35

@FinePointsBookkeeping Жыл бұрын

Whew! That was a lot of info. What other questions do you have about salaries, W2s, contractors, 1099s, S-corps, distributions or K-1s?

@sarahjohnson6212 10 күн бұрын

This was phenomenal, THANK you! I'm a business owner who does my own bookkeeping and then send it to my accountant for review, and this finally helped me understand the why behind the coding!

@FinePointsBookkeeping 3 күн бұрын

Glad it was helpful! Krista (FinePoints Admin)

@jimmyharrisiii 11 ай бұрын

You did an awesome job explaining the different scenarios!

@FinePointsBookkeeping 11 ай бұрын

Thanks for the positive feedback! Krista (FinePoints Admin)

@mrs.howell1905 Жыл бұрын

Not to be all in your business, but do you mind disclosing what was that dollar amount you reached that your accountant said to switch over?

@FinePointsBookkeeping Жыл бұрын

I think around 40K annually is the average threshold. It may vary household to household depending on what else you have going on.

@mrs.howell1905 Жыл бұрын

@@FinePointsBookkeeping Profit?

@FinePointsBookkeeping Жыл бұрын

Yeah, net income.

@mrs.howell1905 Жыл бұрын

Thank for this

@FinePointsBookkeeping Жыл бұрын

Thanks for watching and being engaged!

@JoeJarrell 9 ай бұрын

This was such an insanely helpful video. Thank you!

@FinePointsBookkeeping 9 ай бұрын

Glad it was helpful! Krista (FinePoints Admin)

@mrs.howell1905 Жыл бұрын

Also what made u choose s instead of c?

@FinePointsBookkeeping Жыл бұрын

That was what my accountant recommended--I think that C-corps are for bigger businesses.

@azielbrown 7 ай бұрын

Great video!!

@oliveoil2335 5 ай бұрын

Hi, I happened upon your video and found it so helpful so thank you for sharing.

@FinePointsBookkeeping 5 ай бұрын

Glad it was helpful! Krista (FinePoints Admin)

@joeytaxes8673 9 ай бұрын

Hi, hope all is well. Question. In my LLC, if I make $100,000 in a year, and I take out or Draw $25,000. On my LLC, P&L it still reads $100,000 because the draw is not an expense, yes? Now do I claim the $25,000 as income on a Schedule C or just enjoy the money? Thanks JC

@FinePointsBookkeeping 9 ай бұрын

You claim the full 100k, b/c that's the profit of the biz. For this biz type it doesn't matter the amount you transfer to your personal account--only the biz profit matters.

@joeytaxes8673 9 ай бұрын

Great, that part I understand, my inner question is the $25K I take out - do I claim it in a Schedule C or do I not claim the 25K.....I hope I am making sense.@@FinePointsBookkeeping

@badgerlifter9572 Жыл бұрын

Just opened myself a S-corp/LLC. This video was a nice review. I currently hired a bookkeeper, but am considering getting into bookkeeping as a side gig. (I am a physical therapist assistant)

@FinePointsBookkeeping Жыл бұрын

Bookkeeping is a great side gig--let me know if you have any questions about it!

@JettingChen 4 ай бұрын

6:44

@maryflackonline 5 ай бұрын

so, as an LLC, I am considering paying myself as an s-corp, so a bi-monthly salary. In addition, I expect to take "distributions" which I would pay quarterly taxes on, correct? What about the money that I don't take out of the business? Is that taxed as profit the same way it was when I was taking only owners draws?

@mavenfeliciano1710 6 ай бұрын

As a corporation one's salary could be higher than one's owner's draw which means a bigger tax deduction. Am I understanding that correctly? What about non-profits, including those that garner millions+, or CEO of the non-profit?

@Rockyspropertycare 8 ай бұрын

Can I use an owners draw to pay back money I put into the business to get it going? It’s a Llc type. I want to not pay taxes on it.

@kimberlypearson2018 11 ай бұрын

I work for a law office. Partners take a distribution. Do I pay them thru payroll or as a vendor. All have direct deposit

@FinePointsBookkeeping 9 ай бұрын

For our partners, we write paper checks for distributions (they prefer that). You can definitely put it through a payroll company, as long as it's marked as a distribution (not going on the W2).