Sole Trader Wage
Hello,
I am self-employed.
I'm trying to pay myself a regular weekly wage. How should I code this as it's not through payroll?
I'm also paying myself super. Would this be under Equity or Expenses?
Thank you!
Kelly.
Forum Discussion
5 Replies
Hi Kelly_C
This is really a question for your accountant. Ask then how you should record amounts you take out of the business. As a sole trader you cannot pay yourself a wage. Some prefer to refer to it as a loan, some use drawings etc. As your accountant will likely prepare your tax return, get advice from them.
Regards
Gavin
Kelly,
Gavin is correct that a Sole Trader cannot pay themselves a Salary.
I would use Owner's Drawings.
A Sole Trader can make Deductible Super Contributions (up to the allowable amount).
Has your Accountant offered some advice?
Duncan
Hi Gavin,
No my Accountant hasn't gotten back to me.
I'm using Owner Drawing for my weekly payments.
I'm still unsure whether my Super payments should be under Owner Drawings also, or an Expense?
Hi Kelly_C,
I appreciate your post. I get that you're unsure about how to classify your super payments in your accounting system. I strongly agree with gavin12345 and DuncanS's responses. Since this is about specific financial advice, it's best to talk to your accountant or a financial advisor. They're the experts who can help you with this and make sure everything is done right. Remember, it's crucial to get this correct to follow all the necessary laws and regulations.
In the meantime, I recommend starting a new post again for any immediate assistance you may need.
Kind regards,
Shella
