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?
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