How do I specify which days a contractor is being paid for when I create an expense?

pml2269487 · ‎April 05, 2020

I'm a one man operation with a lot of contractors and I'm trying to figure out Quickbooks. The recent CARES act requires me to have updated 1099s for all of my contractors. I have a record of everything I have paid them and for what work, but I am months behind on adding that into Quickbooks, so I'm trying to catch up since I started my business in January 2020. I created my "Expense" for work that was done last week. I didn't see anywhere to put a date for the work performed. As I create additional Expenses, today, for work that was done and paid for weeks and months ago, how I do specific which pay period it is for? Do I just add a note? I want to make sure this information is clear when I visit a banker and apply for the SBA loan or get audited.

katherinejoyceO · ‎April 06, 2020

Hello there, @pml2269487.

Thanks for posting here in the Community. I understand the urgency to catch up with the expenses paid for your contractors. Let's enter and pay the bill instead so you can specify the date of the service and the date they're paid.

Here's how:

Select + New menu, then select Bill.
From the Vendor dropdown list, select a vendor.
Enter the date of the service on the Bill date and all other needed information in Category or Item details.
Click Save to stay on the Bill page.

Once done, you're now ready to make a payment. Click the Make payment at the upper right just below the Balance due. Then, enter the date to specify the month and date the contractor is paid in the Payment date field.

For future reference, read through this article: What is the difference between bills, checks, and expenses?. It helps you learn about when to use bills, checks, and expenses.

Feel free to message again if you have additional questions. We're always delighted to help.

View solution in original post

katherinejoyceO · ‎April 06, 2020

Hello there, @pml2269487.

Thanks for posting here in the Community. I understand the urgency to catch up with the expenses paid for your contractors. Let's enter and pay the bill instead so you can specify the date of the service and the date they're paid.

Here's how:

Select + New menu, then select Bill.
From the Vendor dropdown list, select a vendor.
Enter the date of the service on the Bill date and all other needed information in Category or Item details.
Click Save to stay on the Bill page.

Once done, you're now ready to make a payment. Click the Make payment at the upper right just below the Balance due. Then, enter the date to specify the month and date the contractor is paid in the Payment date field.

For future reference, read through this article: What is the difference between bills, checks, and expenses?. It helps you learn about when to use bills, checks, and expenses.

Feel free to message again if you have additional questions. We're always delighted to help.

caroline59 · ‎January 13, 2021

I have a related question. I have contractors and they like to be paid through cash app, which I understand QB does not support. Since I have been paying them this way, how do I record their pay in the system so they can get a 1099? I have kept diligent notes on dates, hours worked and amounts paid. I just need to catch up and get the info in before the Jan 31 deadline. Any help would be appreciated.

MaryLurleenM · ‎January 13, 2021

Let me provide information about contractors paid electronically, caroline59.

Payments to 1099 vendors made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments.

These financial institutions will be the ones to report the payments made to the contractors.

You can run an Excluded Payments by Vendor report to verify excluded payments.

Select Expenses, then Vendors.
Select Prepare 1099s.
Go to the Preview 1099 and 1096 Information section and note the column titled Total 1099 Payments Excluded. You can select the total in this column to see an Excluded Payments by Vendor report, which shows transaction details. This will help you verify if payments should indeed be excluded.

For more information about the payments that you shouldn't report, review the IRS instructions for Form 1099-K and the IRS Third Party Reporting Information Center.

I'll be right here if you have more questions about the 1099 filing.

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How do I specify which days a contractor is being paid for when I create an expense?