Payroll

Good day, ForFit.

Generating paychecks and invoices are distinct processes within QuickBooks Online, as they are not interconnected.

Aside from that, independent contractors who will receive 1099s at the end of the year are set up outside of the payroll function. Let me share these articles with you:

• Set Up Contractors and Track Them for 1099s
• Understand Which Contractors Need 1099s
• Understand the Difference Between Employees and Independent Contractors

Regarding invoicing the customer for the hours that Mellisa worked, you can also utilize the Billable Expense feature. This functionality enables you to associate expense transactions or contractor payments when generating invoices.

Allow me to give you these articles for guidance and detailed information: 
 

• What Are Pay Rates, Cost Rates, and Billable Rates?
• Enter Billable Expenses in QuickBooks Online
• Invoice Customers for Project Expenses in QuickBooks Online

For additional references, let me also give you these articles as well: Get Answers to Your 1099 Questions.

Feel free to mention my name in your response if you have any QuickBooks-related inquiries in the future. We're available to assist you whenever you require assistance.

The first link below does not solve the issue.  All those parameters are set for billable expenses.   What that does is enable you to invoice the customers based on the instructors’ item price to the customer (ie., the “billable expense”).  It does nothing to enable you to pay the instructor their rate.  The second link you emailed is basically the same as the first link.   You are already able to invoice based on weekly timesheets or QB time.   the issue is paying the instructors their rate and getting a report about the their time and rates linked so you can either create a bill to pay them or just pay them off that report.

Thanks for coming back, ForFit.

Yes, you are right. You can create a bill or expense to make the instructor billable. Also, jenop2 is correct that independent contractors who will receive 1099s at the end of the year are set up outside of the payroll function. What we can do is enter the hours as quantity on the bill including the rate in the Item details dropdown. Here's how:

1. Go to the +New and select Bill under the Vendors section.
2. Enter the Vendor name, date, and other needed details.
3. Enter the time or hours in the quantity (QTY) and Rate.
4. Tick the Billable field.
5. Press Save or Save and Close.

For your visual reference, I’ve added some snapshots below:

I’ve added some resources below to guide you in managing the working hours of your vendors or contractors:

• Track and manage timesheets in QuickBooks Online
• Turn on and set up time tracking in QuickBooks Online

I'll also include some articles to help you understand how the bill works in QuickBooks Online. This way, you’ll be able to handle your bills wisely:

• Enter bills and record bill payments in QuickBooks Online
• How to set up a recurring bill

Please keep me updated if you have any questions or concerns about managing the contractor's transaction. I'll be by your side every step of the way. Take care and have a wonderful day.