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madison-arnoldroofs
Level 2

Reimbursing Contractors

I am a newbie when it comes to QuickBooks so forgive me. I just started working with a new company and they have invoices from contractors that need to be reimbursed. Do these invoices need to be entered before we reimburse them either as an invoice or expense? The only person in the company that new QB quit without notice so I am just trying to pick up the pieces. Thank you!

Solved
Best answer February 17, 2023

Best Answers
Rustler
Level 15

Reimbursing Contractors

Reimbursing contrators is a dicey situation legally. If you do it, then you are paying the expense and as such you need to have the original expense receipt for your records.

The vendors invoice to you his customer is your bill by the way

Typically what you pay to a contractor is his income, and he has his expenses which reduce that income. What you pay a contractor is also reportable on the 1099 at the end of the year if paid by check or cash and over $600 annually.

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1 Comment 1
Rustler
Level 15

Reimbursing Contractors

Reimbursing contrators is a dicey situation legally. If you do it, then you are paying the expense and as such you need to have the original expense receipt for your records.

The vendors invoice to you his customer is your bill by the way

Typically what you pay to a contractor is his income, and he has his expenses which reduce that income. What you pay a contractor is also reportable on the 1099 at the end of the year if paid by check or cash and over $600 annually.

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