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how to record wage paid & withholdings in Quicken Business?

Mike Simard

I have a small S-corp with just myself as an employee. I pay myself a small salary, and withhold the approrpiate taxes, FICA, etc.
How do I record the payment of these wages in the Business categories? The Schedule C list only has "wages" listed. Do I record gross or net wages? Where should I categorize withholdings?

Mike

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Accepted answers

volvogirl

The S corp needs to be in its own Quicken data file because it files a separate tax return. You should not commingle it with your personal accounts. And Quicken is mainly for personal finances and tax returns that include schedule C for self employment income. Not official business tax returns. You really need QuickBooks for a Business entity.

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Quicken Sarah

Hello @Mike Simard

Thank you for taking the time to share your question with the Community, although I apologize that you have not yet received a response.

If you haven't already, please review the information and steps available here, and let us know if this helps to explain how to use the Paycheck Wizard to track wages in Quicken or if there are further questions/concerns the Community may assist with.

Thank you,

Sarah

NotACPA

@Mike Simard Does your S-Corp file it's own tax return ... or is it included on Sched C of your tax return?

In the former case, the S-Corp should be in it's OWN, separate Q data file ... not in yours.

If the latter case, then you and the S-Corp are a single tax-entity, and it is NOT paying you wages ... because you're a single tax-entity. You're just moving money from one pocket (the S-Corp) to another (yourself).

Please clarify, and then we can help further with your pay question.

Mike Simard

NotACPA,
Yes, last year (2018) the S-Corp filed it's own tax return on form 1020S. This results in issuing a K-1 form to the owner(s), in this case just me. This year (2019), the S-Corp also paid wages to me, so I expect that the S-Corp will issue both a W-2 and a K-1 to me. Hopefully this is correct.

So I'm trying to account for the withholding taxes, FICA and U.I. paid by the S-Corp when making a paycheck. I don't see these options in the business catagories drop down menu (particularly in Sched C).

I'm not sure why I couldn't have both the S-Corp and my personal finances in the same Quicken file. The paycheck is not recorded as a transfer, but rather issued a check from the business checking and deposited in personal checking. I can set up a paycheck on the deposit side in my personal checking. But I don't know how to split the transaction on the issuing side (business checking).

Thanks in advance for your help!

Mike

volvogirl

NotACPA

@Mike Simard @volvogirl answered your question for me.

A single Q data file should contain all of the financial info for a SINGLE TAX ENTITY. And ONLY the info for that tax entity.

You and your S-corp are two separate tax entities.