Paying owners a draw

[Vicki]

The company I am doing payroll for is an LLC partnership. The employees are paid as W2 income. The owners are paid biweekly also but it is considerred a draw and no W2 is issued to them. So do I set them up as 1099 employees and then not run a 1099? I know I don't want their pay to show up on a W2 at the end of the year. How should I set this up?

[Paul Mayer]

That would be the best way to track their draws as long as there are no other non-employee payees are in your system.

[Vicki]

Thanks that is what I thought as well.