QB Issue Resolution:
“Is there a way that I can enter these amounts so that they will be automatically tracked on the K-1 in the appropriate field,”
QB does not have the tax forms, so you will manage this payment but there is nothing that makes it automatically appear on a tax form.
“or is there another method that I should follow.”
The payment is on behalf of this shareholder, personally, and that makes this payment a Distribution for that person. It reduces their Equity.
“Although this information is reported on profits, not distributions,”
It is Calculated on Profits. Distributions do not affect Profits.
“I assume these amounts can be deducted from the owner’s draw,”
Well, there is No Such Thing as Owners or Draws, for this entity. You are Shareholders and you are allowed Distributions, not Draws.
“but I don’t want to reduce the amount reported on the K-1.”
It does not impact income and expense and operational data.
It basically is a backup withholding process for income taxes.
“Do I have to set up a new account to match/offset the “withholding” payments.”
You can set up an equity account for them if you don’t want to use their regular Distribution account. But this still counts as Distribution for them.
Resolution for Issue 'Flow-thru reported on K1' available: Yes (Solved).
Source: Intuit Community forum.
Flow-thru reported on K1: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for owner draw
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