how do you pay yourself

Discussion in 'Lawn Mowing' started by cjcland, Feb 17, 2000.

  1. cjcland

    cjcland LawnSite Senior Member
    Posts: 278

    how do you guys &quot;pay yourself&quot; how do i seperate paying my houshold bills with my business, do i just pay my power bill out of my business checking, please help because i want to keep track of how much money goes where, i am using quickbookpro for my books do i pay myself by the hour or set up a salary for myself, what do you guys do??<br>please help<p>cjcland
     
  2. PLS

    PLS LawnSite Member
    Posts: 147

    I have a business checking account and a personal checking account. The company writes a check to my personal account. That way the only thing that is on my Quick Books is what pertains to the business, No personal stuff.
     
  3. cjcland

    cjcland LawnSite Senior Member
    Posts: 278

    i figured thats how i would do it, but do you pay yourself a salary or by the hour or a percentage of gross/net profits how do you know how much to pay yourself
     
  4. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    I have a S Corp. Everthing separate and by the book. I pay myself a bi-weekly salary, just like the rest of my employees. Then at the end of the year, I'll take most of the profits in a dividend.
     
  5. lbmd1

    lbmd1 LawnSite Senior Member
    Posts: 462

    We too are an s corp like Lazer and get paid biweekly as well. We use Paychex payroll services . Believe me, for the few extra dollars per week, they are worth it. They perform all necessary tax paperwork, cut the checks whatever day we need them, pays the IRS and provides us with bi-weekly and monthly reports. When we get a call from workman's comp, all we do is fax their quarterly forms to them and we never have a problem. The service and fees are 100% tax deductable! They even provide IRA/401k accounts and deductions. At the end of the year our cpa tells us how much is leftover to cut dividends as well.
     
  6. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    lbmd1,<br>Good Point! My CPA's office owns a payroll service that we use as well. It's the only way to fly. For the meager amount it costs, our time is better spent running our businesses.<p>Plus if you forget to make a tax payment or file a report....The government isn't QUITE as understanding as a local vendor. :)<br>
     

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