Hi kimberly-kwpasha,
It's a pleasure to see you in Community. Welcome! QuickBooks Online Payroll lets you pay your staff with confidence. I would be happy to provide some insight here!
If you're paying your staff through QuickBooks Online Payroll, all associated accounts will be added to your books once payroll has been set up. All tax calculations will be applied automatically when you process payroll, based on government guidelines. If you're paying a contractor, you'll need to set them up as a supplier. Here's how:
1. Open Expenses, then Suppliers
2. Click on New supplier
3. Enter the required fields
4. In the Additional info section, select Tracking for T4A or T5018
Note: If you're not sure what form they should receive, consult with an accounting professional. If you don't have an accountant, follow this link to locate a ProAdvisor in your area.
5. Choose the Supplier type
6. When finished, hit Save
Follow these steps to record your payment to the contractors;
1. From the left menu, open +New
2. Select Expense
3. Complete the required fields
Now that you've recorded the payment, you're ready to proceed with paying your contractors outside of QuickBooks.
In addition, QuickBooks also provides the option to create a billable expense. This enables you to record and track expenses on your customer's behalf, when you perform a service for them. This enables your customer to reimburse the expense when their invoice is received.
If you're not sure of which option, I recommend consulting with an accounting professional, for their expertise and best course of action. If you don't have an accountant, follow this link to locate a ProAdvisor in your area.
If you have any other questions, feel free to reach out again. We would be glad to assist!
