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integratedgarage
Level 1

How should I enter a "bonus" or gift that I gave to sub contractors for Christmas?

I purchased gift cards that I gave to my subcontractors for Christmas. How should I account for that?
2 Comments 2
john-pero
Community Champion

How should I enter a "bonus" or gift that I gave to sub contractors for Christmas?

Add the value to their 1099NEC. To do so expense the gift cards in a category that you can pick up for 1099.

 

This is similar to giving gifts to employees except thatcan employee gift has to be grossed up from net.

 

Or call it advertising and promotion and forget you told us the who what when and how

integratedgarage
Level 1

How should I enter a "bonus" or gift that I gave to sub contractors for Christmas?

Thank you very much for the help!!

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