I file as an S Corp now so my payroll, taxes, contributions etc are all just expenses, so don't exactly remember and prob can't wrap my head around this one completely as I had someone doing my taxes, etc, but here would be a guess to consider?: I think I treated it as another kind/subset of owner draw (given not an expense, but coming from the company checking acct), so yes, for easy tracking I would basically set up another equity acct as you state, understanding when working with these accts that one is substantively another kind of owner draw for most purposes.