Forum Discussion

Kelly_C's avatar
9 months ago

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.  

  • 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

  • DuncanS's avatar
    DuncanS
    Ultimate Partner

    Kelly_C gavin12345 

     

    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?