Paying Owners in Goldenseal Payroll Software

Paying Owners

How do I pay the business owner(s)?

There are two basic ways to pay owners- through payroll, or through equity payments.

If you enter labor hours for owners or pay frequently, use the payroll approach. Otherwise use equity payments.

NOTE-- Click here for more about owner investments and draws.

Owners in Payroll

To pay owners as part of your regular payroll, follow these steps:

Create a Wage Schedule for the owner.
For wage type, use Owner Hourly for pay by hour, Owner Salary for regular payments each pay period, or Owner Draw for irregular payments.
Create an Employee account for the owner.
In the Wage Schedule field, enter the wage schedule from step 1.
Give the owner the appropriate Tax Package and Benefit Package (you may need to create separate ones).
Enter owner hours into Labor Hours records (it's useful for job costing and time billing, too).
Do Write Payroll.
If the wage schedule is set for an irregular owner draw, you can type in the payment amount.

Equity Payments

For equity payments, follow these steps:

Choose Other Lists from the Options menu, and choose Owners from the submenu.
Click the New button, and enter each owner.
Click OK to save each owner record, and click Close to leave the Owner setup list.
(Optional) Choose Special Transfers from the Bank menu, and choose Equity Transfers from the submenu.
(Optional) Click the New button, and enter an Owner Draw transaction..
Choose Checking Transactions from the Bank menu, and choose a bank account.
Click the New button to create a check.
Enter Owner as Pay To type, and enter the owner into the Account field.
Type in the amount of the draw.
If you created an equity transfer in steps 4 and 5, choose Equity Transfer in Transaction Paid popup, and enter it into the Reference field. Otherwise choose Paid On Account in the Transaction Paid field.

Click here to return to payroll topics.
Click here for general information about Goldenseal payroll software .