The company I am working with utilizes Independent Contractors that invoice the firm monthly for each of the projects or accounts they work on. We receive multiple invoices per independent contractor and the hourly wage and time varies by project each month. (Example: 3 contractors might invoice 4 bills per month each for 4 different projects, with 3 different rates.) These invoices are categorized as a Cost of Goods for the project and they are also considered a billable expense.
The company needs to track the amount billed by project and we also need to track the invoices billed and payment to the independent contractor.
Previously, all of these Independent contractors had been paid as a 1099 vendor. With the changes in the laws regarding independent contractors, my firm would like to start paying these individuals through the Payroll Service and begin paying payroll taxes on the payments.
These people are not salaried employees and the dollar figure they bill each month varies greatly upon the work they performed on behalf of the company. The work is all on project basis and the projects change month to month based upon the firm’s clients.
I am trying to figure out a way we can enter these bills (invoices) into QB’s and easily determine the dollar figure each month to submit to the Payroll company for payment. I then need to be able to clear the payable after it has been paid through the payroll service.
Currently we enter a payroll journal entry each month for our salaried employees. The company utilizes an outside payroll company (not QB)
Any suggestions would be greatly appreciated.
Things to keep in mind:
- Invoices need to be categorized as COGS and become a billable expense.
- Easy tracking of invoices received and paid through QB and the ability to run a vendor report on the independent contractor. (i.e. we need to be able to tell the independent contractor, that their invoice # XYZ was paid on payroll check #ABC.)
