Financial Advisory Blog

Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.

July 23, 2020

Our owners pay is included in the payroll gross pay totals we received from our payroll provider. If we are supposed to list owners’ pay in Tab 7 of the model, how does that get matched with the amounts listed in the Pay Cycle 1 Input tab? Should we include the W-2 pay to owners paid by our payroll provider in the Pay Cycle 1 Input tab or the Owners Comp tab 7?

Posted by Armanino Financial Advisory Team

Any salary paid to an owner by your payroll provider is presumably reported as W-2 earnings at the end of the year, and as such should be reported on the Pay Cycle 1 Input tab so the amounts entered in a payroll cycle column match the total at the top (as denoted by a $0.00 in the CheckSum cell). The amounts that should be listed in the Owners Comp tab 7 of the model are non-salary amounts that an owner receives that are reported on their Schedule C or as guaranteed payments on a K-1.

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