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Payroll

Hello, so I have a very confusing question but I'm sure it can be solved because a lot of other trucking companies do this as well. So we have our own fuel card which our drivers fuel our trucks with but we also have drivers who have their own trucks and use our fuel card to fuel up.  When it comes to paying them how do I do it so that it doesn't go on their 1099 amount. For example he made $10,000 from driving his truck and he fueled up $2000 with our fuel card so what we do is deduct that $2000 and his check becomes $8000. Then at the end of the month a bill comes to us for $30,0000 for the fuel, in which $2000 are what the driver used. How do I record his "charge" for fuel without affecting the drivers 1099?

Also I would want to record the $30,000 clean for fuel expense without putting the $2000 in, how do I do the fuel expense properly?

Attached is a settlement example, how do I record the fuel and the payroll properly?

  

1 Comment
Established Community Backer ***

Re: Payroll

The 1099 has to include the $8000 paid plus the $2000 in fuel provided because the driver earned $10000. Record a vendor bill for trucker at 10k, create credit memo for fuel purchases from you for 2k, apply credit and pay net.

 

BTW, since you are dealing with a US 1099 why did you ask on the Canadian board?