I have an engineering client (S corporation) that bills his clients using a job cost system. He bills his time at an hourly rate, but wants to pay himself as a salaried employee.
Does anybody have any experience for recording this in Quickbooks?
So for example, his job cost paycheck for a month might be 150 hours at his billing rate of $100 per hour or $15,000.
But his monthly salary for that same period is only $10,000. ($120,000 annual salary).
Would you simply reverse the job cost check with a journal entry? And then create a Paycheck based on his Salaried pay?
Any issues from taxing agencies accounting for this difference if audited?
Thanks