Adding a 1099 Employee into Quickbooks
Hey Everyone -
I'm currently working with two individuals that right now are working short time as 1099s for me. How would I go about entering them into Quickbooks and paying them regularly while keeping everything tidy in QB?
I currently have the 1099 option in "Options" selected/enabled. I then added the Person as a vendor and added the Social as the Tax ID. Is that all? Would I also categorize this as a PAYROLL EXPENSE?
I'm currently working with two individuals that right now are working short time as 1099s for me. How would I go about entering them into Quickbooks and paying them regularly while keeping everything tidy in QB?
I currently have the 1099 option in "Options" selected/enabled. I then added the Person as a vendor and added the Social as the Tax ID. Is that all? Would I also categorize this as a PAYROLL EXPENSE?
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Thank you. I was pleased to assist and good luck going forward. ... Thinkpads_User
Depending upon your version of QB, it's slightly different, but basically, in Company Preferences, TAX:1099, enable 1099-MISC forms and set the correct thresholds. Then add them in as new Vendors and on the Additional Info page, add their social as Tax ID, and check off the Vendor is eligible for 1099 box. That will make them appear on all 1099 reporting.
And the expense category would most likely be whatever they were hired to do... for example, "Computer Programming Expense", "Bookkeeping Expense", whatever....
At the end of the year, run your 1099 reports and any vedor that hits the threshold should receive a 1099....
And assuming your in the US, you should be having them fill out a W-9 form - "Request for Taxpayer ID" (http://www.irs.gov/pub/irs-pdf/fw9.pdf)
Of course, check all that accounting stuff with an accountant....