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Level 2

1099 Contractor Expense Reimbursements

My 1099 contractor submits bills for expenses and hours separately to me. Should I record each transaction in the appropriate expense category and issue a 1099 for the whole amount for the contractor to take care of deducting expenses on their own or should I be treating the two types of transactions differetly? I would appreciate any help with this. Thanks!

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Best answer 01-04-2020

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Level 15

1099 Contractor Expense Reimbursements

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The crux of the matter is who has the expense receipts - if you get them, then you are reimbursing the expense and it is not 1099 reportable.

 

if the contractor keeps them as his expenses, then the whole amount you pay him is 1099 reportable

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Highlighted
Level 15

1099 Contractor Expense Reimbursements

This subject can start discussions

 

The crux of the matter is who has the expense receipts - if you get them, then you are reimbursing the expense and it is not 1099 reportable.

 

if the contractor keeps them as his expenses, then the whole amount you pay him is 1099 reportable

View solution in original post

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