Owner draws and payroll

Hello there, @mmanwar546.

In QuickBooks Online, the recommended way in paying an owner's draw is through writing a check. Before you can pay an owner’s draw, you need to create an Owner’s Equity account first. 

However, since you want to do it through payroll, you can however create a non-taxable reimbursement item. Since reimbursements are non-taxable, they don't appear on payroll tax or other tax reports. They're also not included in the wage base used to calculate percentage-driven deductions. You can follow the steps indicated in this article to know how to add one: Add or pay types.

Nonetheless, I'd still recommend consulting with a qualified accountant or bookkeeper to ensure that this setup aligns with your specific business needs and complies with relevant tax regulations. If you don’t have one yet, you can visit our ProAdvisor website to find an expert.

For additional resources, you can browse this article to learn more about setting up multiple and different hourly rates for employees: Pay an employee different hourly rates. It includes instructions on how to do it in each payroll version.

If you have any further questions or need additional assistance in handling owner's draw in QBO,  please don't hesitate to reach out to our Community team. We're here to help you every step of the way. We value your business and look forward to providing you with a seamless experience as you continue to use our Online Payroll service. Have a great day.