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Contract Labor

Forum|Forum|3 years ago
August 17, 2022
17 replies
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I use the self employed version. I own a bridal beauty team and they do hair and makeup for weddings on my behalf. I have been categorizing their payouts as contract labor. (the are no employees, just freelancers) But also when a contractor comes to my salon to do work for me (ac/electrical, plumbing etc) I categorize that as contract labor as well. Is this correct? I feel like the freelancers payments should be categorized differently but I haven't found an option that seems right.

QuickBooks Self-Employed

Best answer by Rainflurry

@rdaletto

Your freelancers are contract labor. When you hire an electrician to fix something, that is not contract labor, that is a repair expense. Contract labor is used in lieu of payroll for paying independent contractors that are working for your business under a contract, not as an employee.

C

Candice14

Level 8

Hey there, @rdaletto.

It's great to see you back in the Community. I'd be more than happy to share insight on particular categorizes in QuickBooks Self-Employed.

You can categorize the following types of transactions as contract labor:

Fees paid for:

Create resources
Outside research and data collection
Additional project support
Subcontractors and independent contractors

Learn more about this category and more through this link.

If you still need assistance after looking over these details, just let me know. I'm only a post away if you need me. Have a great day!

R

rdalettoAuthor

Hi, thank you for your response but Im still confused. Both of the people I need help with are considered independent contractors however, one is working for my business under my name and insurance. The other is doing a service for me that Ive hired under their own business and insurance. Is there no difference then for categorization of these two?

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bbquestions

Hi there, @bbquestions. I want to ensure you'll be able to see the Contract labor category in QuickBooks Self-Employed (QBSE).

To start, could you tell me if you're trying to categorize a manually added transaction or those automatically downloaded entries? That information is a great help so I can provide a timely solution.

In the meantime, let's check the Category and Tags column on the Transactions page to check if you can see the Contract labor among the options. Please see the screenshot below for a visual guide:

If you still can't see the category, you can perform some troubleshooting steps to verify if this is a browser-related issue. To start, access your QBSE account via incognito mode. If this works, go back to your regular browser and clear the cache to eliminate piled-up data. If the same thing happens, you can use another supported browser or device. Might be that the current one you're using has a temporary issue with the program.

For reference, please read this article: Schedule C and expense categories in QuickBooks Self-Employed.

If the issue persists, I recommend reaching out to our Customer support team to help you look for the category you need.

In QBSE, creating rules to quickly categorize your recent and past transactions is a breeze. For the detailed steps, check out this link: Create rules to speed up reviews in QuickBooks Self-Employed.

I'm always here ready to lend a hand if you have any other concerns about categorizing transactions in QBO. Please don't hesitate to leave a reply below. Have a good one.

It sounds like you are referring to US Quickbooks. I am in Canada, and those options are not available to me. It sounds like "Schedule C" relates to US taxes, not Canadian? Here's a screenshot of the options available to me: