How do I pay music royalties to an employee in QuickBooks Online? The royalties are for songs written as part of their work. Do I add it as a pay item or issue a 1099?

BWay · ‎February 07, 2020

As part of his work, one of our employees has written songs that as his employer we are claiming publishing rights for. We have negotiated a royalty agreement for him as well as other artists we publish. For this employee, do we treat his song royalties as regular income, some other type of supplemental income or do we issue him a 1099 for royalties like we will do for non-employees we pay royalties?

JaneD · ‎February 07, 2020

Hi there, BWay.

You can report received royalties as income to your company and as expense when you use them to pay.

To create an expense transaction:

Click the + New button and choose Expense.
Select a payee and an account.
Set the Payment date.
Enter the information in the Category details section.
Click on Save and close once you're done.

I'd recommend consulting an accountant for further guidance on which account to use in the expense transaction.

Let me share some of our great resources what'll help prepare and file your 1099s:

You can reach out to us if you have further questions. We'll be around to help.

BWay · ‎February 10, 2020

Thank you; appreciate the help.

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How do I pay music royalties to an employee in QuickBooks Online? The royalties are for songs written as part of their work. Do I add it as a pay item or issue a 1099?

How do I pay music royalties to an employee in QuickBooks Online? The royalties are for songs written as part of their work. Do I add it as a pay item or issue a 1099?

How do I pay music royalties to an employee in QuickBooks Online? The royalties are for songs written as part of their work. Do I add it as a pay item or issue a 1099?

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