Hello everyone, i've been researching but haven't found an answer.
My business runs on 1099 contractors that get paid certain p/h rate.
I and the contractors provide professional services to my clients, also on p/h rates.
So i need to send invoices to our clients containing names of staff, hours worked and hourly rate we charge.
At the same time, i need to pay my contractors for the hours worked, but with a different rate than what we charged the client. Basically the difference covers the cost of business and my time on the project.
So issues i have when using QBO is when i create invoices for our clients, i am unable to list names of the contractors next to the hours and billing rate p/h per contractor. The only thing that comes up is hours and description when i try to setup invoice. i see an option to list employees and rates, but these folks are not employees. if i set everyone up as employee then 1099 preparation doesn't work.
At the same time i want to be able to pay the contractor for the hours they worked somewhat automagically. without me having to run a time report, multiply by their hourly rate and manually pay them the appropriate amount.
I found something online.... here but it says that its available only in Contractor, Professional Services, and Accountant editions. I'm assuming that's desktop software for large corps?
Let me share some ideas about invoicing in QuickBooks Online, @malahhaor.
When creating an invoice, there isn't an option to put the contractor's name. If you want to pay your contractors at a different rate, you can create a different service item for each contractor. This way, when you enter the timesheet, you can use their respective service item to charge the customer based on the rate.
Now you can add the product and service to your invoices.
You can also track it on your financial reports.
Let me know if you need further assistance in recording invoices for your contractors. I'm always here to lend a helping hand. Keep safe and healthy.
Thank you for replying. I tried to follow but my menu doesn't have Sales. I did find Products and Services and added a name to the description. I also don't have Sales Tax category dropdown.
It seems like an easy option to have, include employee or contractor name on the invoice. Why would something like that not be available?
If i go this route, and i have 10 contractors, will I need to create 10 different product and services? one for each contractor just so i can invoice my customers?
Also as i mentioned, i need to be able to pay the contractors. how do i generate payments automatically based on their rate and time worked?
Hello there, malahhaor.
Aside from the suggestion on the earlier response, I can think of another, too. We can make the hours billable to the customer while we pay the contractor. However, this process has to be done manually.
First, we'll have to turn on the Markup option in the company settings. This would help us invoice the customers with different amounts:
Second, we'll create a Bill, Check, or Expense to the contractor and make it billable to the customer:
Lastly, we'll create an invoice for the customer.
Meanwhile, we have timesheet in QuickBooks Online where you can enter the hours worked. However, it might not work well for you since these hours will not show when you create bills, expenses, or checks. Here are some links that you can review about the feature:
Moreover, you might want to reach out to your accountant about this situation. They can give you other options that will surely suit your business setup and books.
Let us know if you need anything else. Have a great day!
Thank you very much for your help but i don't have most of the options available to me that you are describing. Perhaps my subscription doesn't have this available but based on what i'm finding, higher subscription level wont give me what i'm looking for either.
I think this is a wrong product for me.
Thank you for your time..
Hi I have almost the same situation. We are a staffing company and we do payroll on a weekly basis, we take whatever we pay our employees and mark it up to our customers.
-Is there a way that use the payroll information from my employees and create an invoice to my clients?
- since we have a different markup for almost every client is there a way I can have a markup or fix amount by customer?
- Also, a different issue we have aprox. 3K employees (Temp work) and because of that we were told that we should create separate entities because QB or Intut will not be able to create quaterly 941 reports if it's over 800 employees. is this correct ? and can we go around this?
I'll share details to help with your concerns about billable expenses, Eddie.
For now, we're unable to mark up the payroll expenses in QuickBooks. This option is only available when creating checks, bills, and expense-type of transactions.
Although, you can bill the hourly rate or pay of the employees using the Time Sheet feature. Check out these articles for more details:
Also, there's no option to set or assign a mark up rate or amount per customer. You'll need to manually enter the rate or amount in the Markup column when creating billable expenses.
With regards to processing quarterly forms, you may get an error message when creating Quarterly 941 Forms if you have that many employees. QuickBooks is primarily designed for small and medium businesses.
However, there are third-party apps that can help you file your tax forms outside of QuickBooks Online. You can find apps that can be synced with QBO here: https://quickbooks.intuit.com/app/apps/home/.
I would also recommend sending feedback or a feature request about this to our product engineers. Check out this article for more details: How Do I Submit Feedback?.
Additional references when using the payroll functions are also shared in these articles:
Don't' hesitate to add more questions if you need anything else. We'd be more than happy to help you again.