My company started outsourcing payroll. I run this payroll and import it into Quickbooks. This works well for "regular" employees. However, I have my first 1099 contractor included in which I wrote a manual check through Quickbooks Desktop but still had to report to the outsourced payroll company for accurate 1099s. This was imported along with my other employees in a lump sum. I need to know how to now record this single contractor payment in QB. I already paid this contractor using bill/pay and wrote a check. I didn't expect it to come down from the outsource as a new payment. How do I repair these accounts so it doesn't look like I'm paying twice, but shows the expense to the proper category (legal expense) and satisfies the invoice. To be clear, a second check was not direct deposited to the contractor. It was listed as manual, thus recorded only. So it breaks down to just a bookkeeping issue.
1. Should I delete the QB invoice for the law firm but leave the check, or delete both?
2. Should I create a JE to move the $$$ amount from salaries and wages (how it imported) to Legal Fees
3. How does one show that the proper contractor was paid and satisfies their invoice?
This is very confusing for me as it is my first time paying a contractor through outsourcing.
