Level 12

Solved

Workers: Vendors vs Contractors

Forum|Forum|8 years ago
January 10, 2018
3 replies
103 views

It seems QBO cannot leave well enough alone. A whole new type pf payee, Contractors has been added and it would apear on the surface that your 1099 vendors must be now moved to or duplicated as Contractor (we all know duplicate names are a no-no so append a period to end of one of the names). But the Contractor tab does pull over only Vendors designated as 1099 https://community.intuit.com/articles/1637708

Of course this will be more confusing to not only small businesses that only have Employees and Vendors (no sub-contractors) that they have no direct dashboard access anymore to their Employees as well as businesses who will think that contractors are employees or worse, will mislabel employees as contractors

I guess what bothyers me most, not that one has to collect info to begin with (contractor email) to offer them the opportunity to enter their own info but that one does not get a printed hard copy W-9 to keep in your records.

Best answer by nicholasmaalouf

Hey @Rustler

Thank you for your feedback, I will pass it on to the team. With this first release, the ability to desginate a vendor as independent contractor is now available for Simple Start and Essentials users as well. Not just QuickBooks Plus.

This is so QuickBooks users will not need to add the person again under the workers tab. Simply checking the 1099 box in the vendor profile will cause them to show up within the contractors section. Hope that helps calrify our intentions with the product change.

Rustler

Level 15

I'm not sure what you are refering to concerning the w-9 and hard copy. I download the w-9, I hand it to the vendor and when I get it back I scan it as a pdf.

If you are trying to do it all electroncially, then you really need to also use a web based signature service like right signature or sign now. Then at least you have some defense if you need it, as to whether or not the correct party actually signed the w-9.

That workers menu change showed up a week or so ago in my account - I find it funny. With all the things they could be doing to make QBO effective, with all the issues and problems it has, they spend the time on useless changes to the interface - again.

Since only QBO+ can designate a contractor as an independent contract eligable for the 1099 (not all contractors are 1099) That change should not even be in essentails or simple start - is it?

N

nicholasmaaloufAnswer

Hey @Rustler

Thank you for your feedback, I will pass it on to the team. With this first release, the ability to desginate a vendor as independent contractor is now available for Simple Start and Essentials users as well. Not just QuickBooks Plus.

This is so QuickBooks users will not need to add the person again under the workers tab. Simply checking the 1099 box in the vendor profile will cause them to show up within the contractors section. Hope that helps calrify our intentions with the product change.

R

Rea_M

Level 10

Hi,

can multiple entities share vendors database in QB desktop? we have 5 entities set up under one QB subscription. there are vendors for more then one entity. I just wonder if there's a way to share the vendor database instead of adding the same vendor to each entity.

Thanks,

Hello there, @Orange Cat.

Currently, the option to share the vendor's database to multiple entities in QuickBooks Desktop (QBDT) isn't available. You need to manually add the information per entity. With this, you can export your vendor list to an IIF file from one entity and import it to the other.

To export, here's how:

Go to the File menu.
Select Utilities.
Choose the Export option, then select Lists to IIF Files.
Select the Vendor List box and click OK.
Browse the location where you want to save your file and click Save.

I've attached a screenshot below that shows the first four steps.

Once done, open the other entity and make sure to log in as the Administrator and in a single user-mode to import the vendor file. Before doing so, you'll have to back up your company file for future use. When you're ready to import, here's how:

Go to the File menu
Select Utilities.
Choose Import and click IIF Files.
Follow the on-screen instructions to complete the process.

I've attached a screenshot below that shows the first three steps.

After that, I'd recommend pulling up the Vendor Contact List report. This is to make sure the process above is successfully executed. Just go to the Reports menu, select the Vendors & Payables option.

Additionally, in case you want to export and import vendor list using the MS Excel file, you can refer to this article: Import or export MS Excel files.

Don't hesitate to leave a comment below if you have other concerns with managing your vendor database in QBDT. I'd be happy to help. Take care always.

N

nicholasmaalouf

Hi @john-pero

Thank you for submitting this feedback and sharing your thoughts. I'm one of the product managers who are currently working on this feature. Your input is very valuable and I've shared it with my team as we continue iterating.

S

suzannek1

So - I still don't know what the difference is as far as QB's is concerned? Why both? Being a software app - and an ever changing one - how the program pulls info from these categories is important as it will determine how we users classify vendor and contractor. So what is the endgame? This is a need-to-know.

C

ChristieAnn 11

Level 9

Hi there, suzannek.

Categorizing the person as contractor or vendor is important so QBO can accurately help track payments for tax filings.

If the person works for you as an independent contractor, you should set up that person as a vendor. The general IRS rule is that an individual is an independent contractor if you have the right to control or direct the result of the work but not the means and methods of accomplishing the result.

An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement. Unlike employees, independent contractors do not work regularly for an employer but work as required.

If a 1099 vendor is missing from the list, you can make them eligible for a 1099. Please check this article on how to perform the steps: Add contractors or vendors when preparing 1099s.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

J

jebsilver

Is there no way to delete a Worker/Contractor? I added a contractor, regretted the decision, and now I'm stuck with this bogus record and no way to remove it.

A

Anonymous

Hey @jebsilver,

I’ve definitely been in that boat. Go to their profile and make them “inactive” so they don’t show up on lists anymore - by making them inactive, the transactions associated with their work will still show up on the relevant/appropriate reports.

J

jebsilver

If I go to Workers > Contractors and click on that contractor, I don't see any way to inactivate them. There is a pencil icon to edit their information, but no way to deactivate or delete that I can see.

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