Insurance premiums for contractors and 1099's

Put it all in block 7, and as you said his expense will lower the net income amount in his books

New 1099-Misc?

Box 5 is Fishing; is that your industry?

Box 6 is your payment for services to Doctors and Clinics, such as, you paid for a worker that got hurt on the job. Or, you pay for a doctor to come in and give DOT or DUI examinations and testing.

Box 7 is "everything" you paid to them or on their behalf, such as Insurance.

"his expense will lower the net income amount in his books"

Health insurance is part of the 1040; not their Sched C.

How is this recorded?  I do not want to simply apply the insurance deduction to a liability account, I want it to be deducted from the the Check Register balance.  Do I need to setup a 2nd bank account and transfer funds into that?

Invoice = 10,000

insurance = 2,000

Check = 8,000

Hi there, @PHX.

Thanks for posting to this thread.  You can actually create a Bill and then enter this deduction as negative value.

Before doing so, I suggest consulting an accountant to help and guide you how to record this work and what account to use for the deduction. Your accountant can provide you more expert advice in dealing with this concern.

Also, in case you want to learn some tips on managing your banking feeds, you can always visit our Banking and bank feeds page for QuickBooks Desktop for reference.

As always, feel free to leave a comment below if you have other concerns. We're always here to help.