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Level 1

Drivers as Vendors - How do I Record Weekly Payments

Hey there, 


I have set up my QBO for my Trucking Company, just tracking my own expenses and income. Now I have 4 drivers that I use as contractors. I have entered all my drivers as Vendors. But after that is where I am in over my head. I will not be paying my drivers thru QBO but I need to track their weekly load payouts for my bookkeeping. I'm under the impression that this needs to be entered under Vendor's so that I can create 1099's for them? I just don't know how to begin this process?


For each driver I want to be able to show the following information for each week:

  Driver A - has 4 loads for the week totaling $7000.00

     Load 1 @ $2000

     Load 2 @ $2800

     Load 3 @ $2000

     Load 4 @$1200

Gross Load Total $7000

      I take 5% of the gross load total as my income ($350)   

Leaving $6650.00 for Driver     

        Then I take out: 2% fee for factoring = $133

                                  3% fee for dispatch services = $195.51

                                  Fuel Reimbursement = $1300

Which makes the net income for the driver $5021.49 for the week. (This is what I pay to driver)


How in the world do I enter/code all this so that I can A: track income, fees and fuel on my chart of accounts for later use and B: Show all this to my drivers without handwriting it as I have been??


Am I asking too much? I just want to be able to do this all in one place and I love QBO for my personal business use but now I'm lost! Someone else suggested doing journal entries? but how does that get to a 1099? 


Somebody help please and thank you in advanced!! :) 


3 Comments 3
QuickBooks Team

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.

New Roots
Level 1

Drivers as Vendors - How do I Record Weekly Payments

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?

Content Leader

Drivers as Vendors - How do I Record Weekly Payments

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!

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