Do I need to pay an additional contractor fee even for months where the contractor in question wasn't paid?

ashleynicholsart · ‎June 04, 2024

I have a rotating roster of contractors I work with, often resulting in them working only weeks at a time. Save for a few cases, they rarely work several months with clockwork consistency.

Will I need to pay for additional contractors for every month of the year after they're initially paid? Or will that fee only be added for months during which payment is issued? And does the latter jeopardize the 1099s sent to them at the end of the year in any way?

Shania_C · ‎June 05, 2024

Welcome to the Community space, ashley.

Allow me to share some insight on handling your queries about your contractor's fee in QuickBooks Online (QBO).

In QuickBooks Online you'll be charged a fee each month for contractors with direct deposit turned on, even if you don't pay them during the month.

Additionally, you can refer to this article on how to close your previous fiscal year and prepare for the new one. Also, how to prepare and file your Federal 1099s in QuickBooks Online:

Let me know if you need further assistance in managing your contractor's fees in QBO. The Community is available 24/7 to help you. Have a great day.

SIAB · ‎June 05, 2024

@ashleynicholsart

Another option, you can use a free billing management app to sync with QBO to pay your 1099 contractors.

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Do I need to pay an additional contractor fee even for months where the contractor in question wasn't paid?

Do I need to pay an additional contractor fee even for months where the contractor in question wasn't paid?

Do I need to pay an additional contractor fee even for months where the contractor in question wasn't paid?

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