Drivers as Vendors - How do I Record Weekly Payments

Thanks for coming in today, @Jfr8.

I have some information about recording your driver's payout. You can add your drivers as a vendor in QBO. Just make sure to tick the Track payments for 1099 box in their profile. Then, create expense and income accounts to track the payout accordingly. Let me guide you how.

To create income and expense accounts:

1. Go to Accounting.
2. Choose Chart of Accounts.
3. Select New. Enter the Account details for your income and expense accounts.
4. Click Save and Close. See the image below.

After that, write your vendor's check using the correct income and expense accounts. Here's how.

1. Go to +New.
2. Select Check under Vendors.
3. Under Category Details, enter your gross total loads and your 5% income.
4. In the Item details section, enter your fees and fuel reimbursement. If you haven't created the items yet, tap Add new.
5. Click Save and close. Below is the screenshot of how it looks like on the check.

With the above steps, you're able to record your contractor's payout and 1099 correctly in QBO. I'd still recommend consulting with your accountant to make sure you're using the correct accounts.

More details about 1099 are found in this article: What is a 1099 and do I need to file one?

In case you need help with other vendor's tasks, click this link to go to our general vendor's topic with articles.

Reach to me anytime if you have follow-up questions or concerns. I'm more than happy to assist you. Take care and have a lovely day ahead.

We pay various loads per check and need to track the factoring fees per load. But we also provide insurance for our truck drivers and deduct that expense from their payment.

Is there a better way to do this using bills?

Thanks for joining this thread, New Roots.

In this instance, I recommend reaching out to an accountant for the most accurate advice. They'll be able to give you the best suggestion based on your unique business setup and workflows. 

If you don't currently have an accountant you can find one in your area specifically trained to use QuickBooks by searching the ProAdvisor site.

The Community is here if you need any additional assistance with the entries after speaking with them. Take care!