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

We are a law firm using a PEO and all partners receive some amount of W-2 wages so that they can get medical benefits. The balance of the non-equity partners’ pay is distributed/paid as “Guaranteed Payments” via an ADP direct deposit. How/where do I post the non-equity partners’ guaranteed payments?

Posted by Armanino Financial Advisory Team

Guaranteed payments for non-equity partners should be added to the salary they were paid in the period the guaranteed payments were made, so that there is one entry for amounts paid to the employee in the pay period. Example: Salary payment (W-2) of $4,000, Guaranteed payment (K-1) of $3,000, enter $7,000 in the pay period for that non-equity partner.

« | »