Accounting for clients that pay me as an employee...


T

TestingNesting

I often get hired as an assistant as a side form of income to my main
buisiness. In Quickbooks I'm used to having the person that hires me
set up as a customer and having a service item "assisting." Then I
just bill them for the fee and I get paid the entire fee. But, some
"clients" pay me as an employed meaning I fill out a w2 and they take
out things like disability, fed, fica, SS, etc. I need to know how I
account for this in quickbooks so I can properly show my income minus
the taxes I'm paying.

Thanks!
 
A

Arnold

I see that you asked this question before, but received no response.

There are two issues here. Are you a self employed accountant that
incorrectly gets "hired" as an assistant or are you working part time as
an accounting assistant who is building an accounting service on the side?

If you are a self employed accountant, you have two choices. First, you
can ask your those that "hire" you to treat you as a contractor and
provide you with a 1099. If you truly are a contractor, they won't mind
because this will reduce their costs for FICA, SUTA, Worker's Comp, etc.
You will then be responsible for the tax issues. The other option is
keeping on, showing your "employment" income on your tax return from
your W-2 Forms. If you do that, keep your employment income separate
from your "main business." It doesn't belong on quickbooks.

Now, let me ask you a hard question. Are you really a professional
accountant that uses quickbooks???



I often get hired as an assistant as a side form of income to my main
buisiness. In Quickbooks I'm used to having the person that hires me
set up as a customer and having a service item "assisting." Then I
just bill them for the fee and I get paid the entire fee. But, some
"clients" pay me as an employed meaning I fill out a w2 and they take
out things like disability, fed, fica, SS, etc. I need to know how I
account for this in quickbooks so I can properly show my income minus
the taxes I'm paying.

Thanks!
..
 
Ad

Advertisements

T

Thomas Healy

I often get hired as an assistant as a side form of income to my main
buisiness. In Quickbooks I'm used to having the person that hires me
set up as a customer and having a service item "assisting." Then I
just bill them for the fee and I get paid the entire fee. But, some
"clients" pay me as an employed meaning I fill out a w2 and they take
out things like disability, fed, fica, SS, etc. I need to know how I
account for this in quickbooks so I can properly show my income minus
the taxes I'm paying.

Thanks!
Set up asset accounts for federal and state income tax withholding, a
sub-account under owner draws (equity) for FICA tax, and gross wage paid as
an "other income" account. For proprietorships that also use QB for personal
expenses, I'll use the Other Income and Other Expense sections for
non-business entries, or add sub-accounts in owner equity for various
personal expenses that don't really belong in the profit-loss statement, but
that the owner wants to track 9an example is mortgage payments).
 
Ad

Advertisements

?

!-!

I don't recall him/her saying he/she is an accountant. Don't muddy
the water.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top