How to Adjust for Shareholder Salary in the Tax Calculations Workpaper

After allocating a shareholder salary, the amount can still show as part of profit in the Tax Calculations (TCP) workpaper unless it's explicitly deselected. This article explains how to correct that.

Steps

1. Open the Tax Calculations (TCP) workpaper.

2. Click Edit.

3. Enter the shareholder salary in the row titled Less proposed shareholder.

4. Click the highlighted icon next to Net Profit/(Loss) Per Accounts.

5. From the account list shown, deselect the shareholder salary code.

6. Save the changes.

Why both steps matter

Both entering the amount in Less proposed shareholder, and deselecting the salary code from the account list, are required. If only the amount is entered without deselecting the account code, the profit figure will still include the salary.

How to access: Job Details, then Job Results, then Workpapers, then select TCP, then Edit.