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Community Contributor *

1099-MISC AMOUNTS

Hello, 

I'm new to Quickbooks and to the company I work for, so I hope I will make some sense, here.  My company uses the same expense accounts to reimburse employees (parking, mileage, etc. - nontaxable to the employee) that it uses to reimburse contractors for those expenses.  The employees are reimbursed in the Vendor section, along with the contractors.  To make this a bit more complicated, some of our employees also receive payments for work that is taxable as non employee compensation.

So, my problem is that the employee's 1099 amount is also bringing in the reimbursed expenses that are not taxable to them, as well as the nonemployee compensation that is taxable.  So if I choose to omit the account that is used for reimbursements, those amounts go away on the employee 1099,  as well as the other contractor 1099's.  

Is there any way to manually override the amounts that populate the various boxes on the 1099, or does anyone have any ideas how I can fix my problem???  Run different batches???  

I hope this makes sense, and thank you for any help you can give!

3 Comments
QuickBooks Team

Re: 1099-MISC AMOUNTS

Hi there, @srich754.

 

Thank you for reaching out to the Community. I can help you correct the 1099-MISC amounts.

 

When creating a check in QuickBooks, you also have the option to choose an employee. Through this, the tracking of their 1099 will be corrected. Let me walk you through the steps:

  1. Click Banking.
  2. Choose Write Checks.
  3. Select the employee name.
  4. Enter the necessary information.
  5. Click Save & Close.

After entering and/or updating the check, the 1099-MISC report should reflect the correct amounts. For additional insights about 1099, please check the follow articles:

I also advise reaching out to your accountant who can tell you which process would be better for your specific books.

 

Let me know if there's anything else I can help you with. I'd be around for you. Have a good one.

Established Community Backer ***

Re: 1099-MISC AMOUNTS


@srich754 wrote:

Hello, 

I'm new to Quickbooks and to the company I work for, so I hope I will make some sense, here.  My company uses the same expense accounts to reimburse employees (parking, mileage, etc. - nontaxable to the employee) that it uses to reimburse contractors for those expenses. 

And there is the problem, you can not do that, you see the result.  Contractor pay has to be booked in its own account.

 

The employees are reimbursed in the Vendor section, along with the contractors. 

 

To make this a bit more complicated, some of our employees also receive payments for work that is taxable as non employee compensation.

Be sure he qualifies, he must, must have his own business, and your company can not provide any tools, materials, etc for him to complete the work.  See the attachment for specifics

 

 

So, my problem is that the employee's 1099 amount is also bringing in the reimbursed expenses that are not taxable to them, as well as the nonemployee compensation that is taxable.  So if I choose to omit the account that is used for reimbursements, those amounts go away on the employee 1099,  as well as the other contractor 1099's.  

Is there any way to manually override the amounts that populate the various boxes on the 1099, or does anyone have any ideas how I can fix my problem???  Run different batches???  

You have to separate out the mileage, etc and move that value to a different expense account.   You can do that with a journal entry after you total the amount that needs to be moved, debit accountable plan expense, credit the account mapped to the 1099

 

Under accountable plans, employees submit mileage logs or actual expense receipts for which they are reimbursed at the standard mileage rate or for actual expenses. The company deducts the reimbursements in full, and employees do not report them as income or deduct related expenses.

Under nonaccountable plans, employees receive flat expense allowances. Employees must declare the allowance as income, and the expenses are taken as miscellaneous itemized deductions, subject to the deduction floor. The employer may owe FICA on the allowances.


Established Community Backer ***

Re: 1099-MISC AMOUNTS

You don't need More accounts or making JE.

 

Let's break it down:

"The employees are reimbursed in the Vendor section, along with the contractors."

 

The first error is making employees as vendors; they are Already employee names. Use that on the check to reimburse for Mileage. Edit and Change your Checks. Reimbursement for Mileage Log reports, supplies expense, etc under an Accountable Plan, is paid to the employee just fine as a regular check or can be added to payroll as a Net Pay Addition, such as people like to do for purposes of Direct Deposit.

 

"To make this a bit more complicated, some of our employees also receive payments for work that is taxable as non employee compensation."

 

If they are your Employee, you don't also pay them as Not an employee, when they are working for you. But, for instance, if they are your Employee, for purposes of Construction, and they have their own Well Drilling Business, then for these activities, you Never mix employee name and vendor name. Use the right name for the specific activity; treat them as if they are Not the same person, because they are Not, for your legal and tax reporting reasons.

 

"So if I choose to omit the account that is used for reimbursements"

 

Straighten out the Names. Stop using a Vendor Name, unless that is a Vendor Relationship.

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