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kentsimms-icloud
Level 2

Is it possible to recategorize a Contractor payroll from payroll Expense to Payroll Contractor for 2023?

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Best answer August 19, 2024

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Carneil_C
QuickBooks Team

Is it possible to recategorize a Contractor payroll from payroll Expense to Payroll Contractor for 2023?

We're unable to do this in QuickBooks Online (QBO) Payroll as of now, kentsimms.

 

However, I've got some workarounds for you to achieve your goal and utilize the Payroll Contractor account in the future.

 

You'll want to move those old transactions from the Payroll Expense account to the Payroll Contractor 2023 by creating a Journal Entry. This process requires an understanding of the debits and credits, so feel free to contact your accountant for further assistance.

 

  1. Click + New and select Journal entry.
  2. On the first line, select an account from the Account field. It depends if you need to debit or credit the account. Enter the amount in the correct column.
  3. On the following line, select the other account you're moving money to or from. It depends if you entered a debit or credit on the first line. Enter the same amount in the opposite column.
  4. Review the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. It means the accounts are in balance.
  5. Enter information in the memo to know why you made the journal entry.
  6. Hit Save and new or Save and close.

 

You can visit this guide to learn how to record journal entries: Create journal entries in QuickBooks Online.

 

From there, you can use the Payroll Contractor for 2023 account to pay your contractors and mapping transactions in preparing your forms for filing.

 

Moreover, you can visit these handy articles for the complete workflow and details about preparing a 1099 and get answers to your frequently asked questions about form 1099, such as running reports to view your 1099 vendors and their payments:

 

 

If you have any trouble with payroll transactions, please let me know. I'll do everything I can to help here in the Community.

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1 Comment 1
Carneil_C
QuickBooks Team

Is it possible to recategorize a Contractor payroll from payroll Expense to Payroll Contractor for 2023?

We're unable to do this in QuickBooks Online (QBO) Payroll as of now, kentsimms.

 

However, I've got some workarounds for you to achieve your goal and utilize the Payroll Contractor account in the future.

 

You'll want to move those old transactions from the Payroll Expense account to the Payroll Contractor 2023 by creating a Journal Entry. This process requires an understanding of the debits and credits, so feel free to contact your accountant for further assistance.

 

  1. Click + New and select Journal entry.
  2. On the first line, select an account from the Account field. It depends if you need to debit or credit the account. Enter the amount in the correct column.
  3. On the following line, select the other account you're moving money to or from. It depends if you entered a debit or credit on the first line. Enter the same amount in the opposite column.
  4. Review the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. It means the accounts are in balance.
  5. Enter information in the memo to know why you made the journal entry.
  6. Hit Save and new or Save and close.

 

You can visit this guide to learn how to record journal entries: Create journal entries in QuickBooks Online.

 

From there, you can use the Payroll Contractor for 2023 account to pay your contractors and mapping transactions in preparing your forms for filing.

 

Moreover, you can visit these handy articles for the complete workflow and details about preparing a 1099 and get answers to your frequently asked questions about form 1099, such as running reports to view your 1099 vendors and their payments:

 

 

If you have any trouble with payroll transactions, please let me know. I'll do everything I can to help here in the Community.

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