Classify an employee as an owner and pay them owner's draws

An owner’s draw is a tax-free transfer of money (no taxes will be assessed or paid) from the company to an owner. These wages are not subject to payroll tax filing and deposits, but are instead taxed on the individual level with annual tax returns.


If you need to set up or pay an owner in Gusto so they can receive non-taxed owner's draws, click the dropdowns below.