Budgeting as an independent contractor with an s-corp

I work as an independent contractor and I have an s-corp. My salary gets deposited in my s-corp's checking account. I am going to have payroll setup so that I get a salary deposited into my personal checking account after taxes are taken out. My salary is a portion of what my s-corp gets paid.

So let's say that $3000 gets deposited into my business checking and payroll takes out $2000 but deposits $1500 into my personal checking as my salary, the other $500 to pay taxes.

How would I keep track of this in YNAB?

5replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • The best solution for YNAB is always to have the accounts & transactions match reality as much as possible. If you have to hold on the the tax money and send it off, have an account & category for that. If you never see it (normal withholding) you probably don't need to track it. If you have separate business accounts for your s-corp, set up a budget for your business & run the contracting income through there & only show what actually gets paid to your personal account in your personal YNAB budget. I'm sure there's other permutations but I hope you get the idea.

    Reply Like 3
  • Hector Puig Do you have a separate account where the tax money goes (ie: are you using  a payroll service that files your taxes for you?) or do you hold onto it and then make quarterly payments yourself.

    Reply Like
      • KD603NH
      • KD603NH
      • 5 days ago
      • Reported - view

      Hector Puig actually - here's a video with a simple way to make the payroll transaction if you have a payroll company. https://www.loom.com/share/e82e6ac8659e49e4b4678e3f8f8e0a8b

      And here is how to do it if you hold the taxes yourself. https://www.loom.com/share/58b1af2ec71b4b7981922fb36b3326b9

       

      These videos don't have audio, but they should be pretty easy to follow.

      Reply Like
      • Hector Puig
      • Salmon_Lightning.3
      • 5 days ago
      • Reported - view

      KD603NH 

      KD603NH I have a separate bank account where the s-corp gets paid and then a payroll service withdraws from there to pay me and taxes.

      Thanks, I will check out the videos.

      Reply Like
      • KD603NH
      • KD603NH
      • 5 days ago
      • Reported - view

      Hector Puig So, the first video should work for you :)

      Reply Like
Like Follow
  • 5 days agoLast active
  • 5Replies
  • 53Views
  • 3 Following