How do you pay yourself?
medicinewomanrd
Member Posts: 1
Your information goes over paying contractors and invoices but what about paying yourself?
0
medicinewomanrd
Member Posts: 1
Your information goes over paying contractors and invoices but what about paying yourself?
Comments
Hey @medicinewomanrd !
When it comes to paying yourself in Wave, there are two methods to do so:
You can record a personal Owner Investment/Drawing expense transaction. Owner Investment/Drawing is a category used to keep track of the money you pay into and take out of your business. With this method, Wave won't generate payroll tax forms for you however.
With our Payroll feature, you can add yourself as an employee and assign yourself a salary/hourly pay rate. If you don't have a fixed pay rate, you are able to change your compensation rate via your employee file. Please note, we recommend setting an annual salary if possible. I do want to mention that, when adding yourself as an employee, you will need to list a different email address than the one used to create your Wave account. An employee having the same email address as an employer can cause errors in the system.
To learn more about Wave Payroll, feel free to check out the Help Center articles below:
Wave Payroll
Pay your employees
Employee Self Onboarding
I hope this helps!
HI,
I am the owner of an LLC in Miami, Florida and I have been paying myself and categorizing it as:
Owner Investment / Drawing.
This number changes from month to month drastically depending of my situation. I know at this point I need to get an accountant involved and start organizing myself even further. But, one of the things I want to do is separate my LLC from my personal taxes and convert to a Corporation. That way pay myself a salary and do taxes separate. I was wondering if I go that route, do I need to start paying myself through payroll? through a payroll system? doesn't this get expensive and more problematic?
I am Pro keep it simple and I would hate to complicate things for myself.
I should mention, I need a waveapps accountant in the Miami area...