It's time to do the 1099s for our contractors. Mid-way through the year, one of our consultants changed from being paid directly using his SSN to paying him through a sole proprietorship and an EIN.
The problem is that somehow the bills continued to be written and paid to him directly instead of using the company name he created.
The bills were paid via direct deposit and were more than $600 for the year.
How can I change the name on the bills and subsequent payments that were made from his name to his company name instead?
I tried deleting the payment applied to one of the bills, thinking I could then change the name of the bill payment, but QB says I must first delete it and recreate it.
There's about five total bills and corresponding payments involved. Should I just write down the amounts and dates for each and redo them all?
It's nice to have you here in the Community, gossamer.
Thanks for giving me a detailed explanation about what you're trying to achieve. I'm here to lend a hand with changing the names on the vendor's bills and payments.
Did you initially entered your consultant as a vendor in QuickBooks Desktop? If so, you need to create a new vendor profile, and manually change the name of the affected bill transactions.
Then, create a clearing account you can use to temporarily hold the payment. Once done, transfer the payment to the newly created vendor through a journal entry. Make sure to consult with an accountant prior to doing the process to ensure accuracy with your books come tax time.
Check out the steps below for each process:
To create a new vendor:
To change the name of a bill:
To set up a clearing account:
To create a Journal Entry to move the funds to the Clearing account:
To apply the amount to the Journal Entry created as an unpaid bill:
Lastly, create a Journal Entry to move the credit from the clearing account to the vendor:
You should now be able to see the transferred amount in the newly created vendor, then apply it to the outstanding bill. Here's how:
By doing these steps, you should be able to retain those bills and payments created in the first half of the year to the SSN profile. While only moving those created during the later half to the present.
Feel free to fill me in if you're referring to something different. I'll be around, anytime!
You need to Avoid JE for anything to do with names, and especially, that just bypassed the 1099 Reporting functions. The 1099 reporting is to a Name, not to the business. Just because someone changed from SSN to FEIN, if they did not also Incorporate, you already had the one name you needed. You simply needed to Update the SSN to be the FEIN. You c an add the DBA part, but Name of the person is always required. DBA in the 1099 is Optional.
So, that Company Name of the vendor is redundant and you want to Merge that to the earlier name you had, and Update the tax id info.
Please see my attachment. That shows what the Vendor Name Edit looks like.
You only set up a different Vendor name, when they changed Entity type, such as Sole Proprietorship to Corporation, or Corporation to SP. Having an FEIN is not New Vendor; it is simply a provision that someone might want to get an FEIN for purposes of no longer giving the world their SSN for security reasons; or they hired an employee and as a SP employer, you cannot run payroll under an SSN and have to obtain an EIN. And it's best to Avoid JE for AP, AR, anything to do with names, etc. At most, someone might have paid the wrong entity and you would Edit each bill and then bill payment check to relink them to the New entity name, such as a Corporation, which is not subject to 1099-Misc reporting for Box 7 under most conditions. You would leave any older payments under the old ID, though.
I thought that I followed the directions to change the name of Payee. These were all old Reconciled accounts and now I am totally out of balance and some done make any send of the out of balance amount. I need help to figure why and how to correct this.
Let me help you with your concern @Susan B.
You can do a "special reconciliation" to check your already reconciled accounts.
You can visit our QuickBooks Help website for articles that you can refer for further use: QuickBooks Support.
Please get back to us if you have additional queries. Were here to help. Take care and keep safe always.
Hello! I have the same issue as the original post ("How to change payee for an existing, paid bill?") but I need to make changes in Quickbooks Online. Any suggestions for the best way to make the updates? Thanks in advance!
Hi there, Meredith17.
Thanks for joining this thread. I'm here to provide some info about changing the payee on a bill in QuickBooks Online.
Once the bill payment has been made in your account, there isn't a way to go in and change the payee name. Doing so will create a separate, un-related payment entry. However, it is possible to make certain changes through a different route, possibly a journal entry. I suggest speaking to your accountant about this to be sure of the best way to get this done.
If you need assistance with completing their recommendation feel free to reach back out here. The Community is always happy to help.
In the thread above, this was offered as a solution for Quickbooks:
"If so, you need to create a new vendor profile, and manually change the name of the affected bill transactions.
Then, create a clearing account you can use to temporarily hold the payment. Once done, transfer the payment to the newly created vendor through a journal entry. Make sure to consult with an accountant prior to doing the process to ensure accuracy with your books come tax time."
Why would the above mentioned solution work for Quickbooks Online?