Owner's Draw
Manderl
Member Posts: 3
Is there an easy way to set up a recurring "owner's draw" within Wave? We have a 2 partner LLC and would like to set up something similar to a payroll for both owners (direct deposit). Since they aren't "employees" or "contractors" I didn't see them fitting here.
At the end of the year, is there an easy way to look at the payouts for tax purposes?
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Hi, @Manderl.
You can, in fact, just pay yourselves through Payroll by Wave. A few Wavers in your situation do the same already. It would be the only way to set up a direct deposit from Wave. You'll even find everything you need in the Wage & Tax report.
Thanks Alexia. If I just issue a check from the business and categorize it as an "owners draw" (so not in the payroll tab) is there an easy way to generate a schedule K-1 at the end of the year?
Hi, @Manderl.
No, you won't be able to generate that directly out of Wave. If you create separate Drawings equity accounts for each partner, however, you use the Account Transactions report to keep track of those amounts.
With that said, I can't advise on issues related to tax accounting, only management accounting. I recommend discussing this matter with an accountant.
That's really helpful! Thank you
No problem at all!