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HollyJoy
Level 3

We want to move a contractor from A/P to Payroll. We have already paid him $1,000? How do we get the $1K from A/P to payroll with his next check so taxes are withheld?

We use QB Online Payroll Premium. His next check is on April 1 for $500.00. We'd like the taxes for the $1,000 already paid to be deducted from this check too.
Solved
Best answer March 23, 2021

Best Answers
JasroV
QuickBooks Team

We want to move a contractor from A/P to Payroll. We have already paid him $1,000? How do we get the $1K from A/P to payroll with his next check so taxes are withheld?

Thanks for getting back to us, HollyJoy.

 

You can enter a prior payroll or run e regular paycheck to record your employee $1,000 and get their state/federal taxes withheld. Let me show you how in your QuickBooks Online (QBO) account.

 

  1. Go to the Payroll menu, then select Employees.
  2. Select Run Payroll.
  3. If you have more than one payroll schedule, select the schedule, then Continue.
  4. Select or review the bank account you want QuickBooks to track this payroll transaction in, the pay period and pay date.
  5. Choose the employees you'd like to pay.
  6. Enter hours, compensation, memos, or any other necessary paycheck information.
  7. Click Preview payroll.
  8. Select Preview payroll details or Submit payroll.
  9. Click Finish Payroll.

 

You can also check this article for more details: How do I create a paycheck for an employee?

 

If you wish to enter it as a prior payroll, you can check this article for reference: Set up a prior payroll for QuickBooks Online Payroll.

 

Let me also add this link that you can read for future reference in filing your payroll taxes online.

 

Keep me posted if you have other concerns or questions about managing your employees and contractors. I’ll be around to help and back you up. Keep safe and take care!

View solution in original post

3 Comments 3
Rustler
Level 15

We want to move a contractor from A/P to Payroll. We have already paid him $1,000? How do we get the $1K from A/P to payroll with his next check so taxes are withheld?

Do you mean using payroll for direct deposit only?  If so that is way different than what I understand you to be asking

 

Payroll means the person works for you, it does not mean they keep their contractor status (and tax treatment) and you take out payroll taxes, etc.  If you want to hire and employ a contractor then they have to be put into payroll as a new worker (change the name of the contractor slightly) so the payroll name is accurate.

 

Regardless, the amount you paid the contractor in the past is a 1099 reporting event, and is separate from payroll.

HollyJoy
Level 3

We want to move a contractor from A/P to Payroll. We have already paid him $1,000? How do we get the $1K from A/P to payroll with his next check so taxes are withheld?

Thanks for your reply. We are going to hire a contractor as an employee this month. (Good suggestion to change his name a bit when we add him to payroll.) Is there a way we can move the $1,000 we've already paid him as a contractor in 2021 to payroll so we can get the state/federal taxes withheld on the $1,000? We don't want to complete a 1099 and a W2 for him.

JasroV
QuickBooks Team

We want to move a contractor from A/P to Payroll. We have already paid him $1,000? How do we get the $1K from A/P to payroll with his next check so taxes are withheld?

Thanks for getting back to us, HollyJoy.

 

You can enter a prior payroll or run e regular paycheck to record your employee $1,000 and get their state/federal taxes withheld. Let me show you how in your QuickBooks Online (QBO) account.

 

  1. Go to the Payroll menu, then select Employees.
  2. Select Run Payroll.
  3. If you have more than one payroll schedule, select the schedule, then Continue.
  4. Select or review the bank account you want QuickBooks to track this payroll transaction in, the pay period and pay date.
  5. Choose the employees you'd like to pay.
  6. Enter hours, compensation, memos, or any other necessary paycheck information.
  7. Click Preview payroll.
  8. Select Preview payroll details or Submit payroll.
  9. Click Finish Payroll.

 

You can also check this article for more details: How do I create a paycheck for an employee?

 

If you wish to enter it as a prior payroll, you can check this article for reference: Set up a prior payroll for QuickBooks Online Payroll.

 

Let me also add this link that you can read for future reference in filing your payroll taxes online.

 

Keep me posted if you have other concerns or questions about managing your employees and contractors. I’ll be around to help and back you up. Keep safe and take care!

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