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Eckhardt59
Level 1

How to enter large number of contactor payments in one transaction?

We're are a third party delivery company that uses independent contractors. We pay 100 plus drivers weekly. We'd like to make one large transaction that ties individual payments to each contractor without having to do them individually. 

5 Comments 5
JessT
Moderator

How to enter large number of contactor payments in one transaction?

Good evening, Eckhardt59!

 

You pretty much have a lot of drivers to monitor. One large payment is indeed more convenient than paying them one by one. We can achieve this, but we need to consider certain conditions, which I would like to go over with you.

 

If the drivers are from one company or agency that you provide a 1099 form for, you can add the company as a contractor and record the large payments for all drivers under it. Just enter the amounts for each driver in the Memo field of the transaction for their references. However, if you need to provide a 1099 form for each driver, you'll want to stick to your current process.

 

You can also check about paying contractors via direct deposit. This may be a better option for you.

 

Don't hesitate to give us a reply if you have additional concerns or information about your business processes! Have a good one!

Eckhardt59
Level 1

How to enter large number of contactor payments in one transaction?

The drivers contract directly with our company. Currently we track all these payments manually but it creates an issue when a driver needs a report of payments. We don't use QuickBooks direct deposit because the cost is extremely high compared to our bank. 

Each batch of payments just shows as one large transaction in the form of a check. I'd love to make a journal entry that creates the check and then the offsetting entries into their contractor account

Eckhardt59
Level 1

How to enter large number of contactor payments in one transaction?

Wed love for QuickBooks to create the 1099 forms and track each drivers pay. We don't currently because we use our banks ach system due to cost. 

Right now we just enter a check for driver pay in one large total amount but another system is required to see the breakdown per driver. 

We'd like to create a journal entry that creates the large payment and then does the entries to each contractors account

FritzF
Moderator

How to enter large number of contactor payments in one transaction?

Hi there, @Eckhardt59.

 

Thanks for getting back to us here in the Community. Allow me to hop in and share information about creating Journal Entry (JE) in QuickBooks Online (QBO).

 

When you record a JE, the transaction will show on both accounts you've selected from the Account column. The steps to do this is are pretty quick. Before we proceed, I suggest consulting your accountant for further assistance with the process to ensure your books are accurate.

 

Here's how:

 

  1. In QBO, click the + New option at the upper left.
  2. Select Journal entry.
  3. Enter the necessary information in the desired fields.
  4. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  5. Hit Save and close.

 

For more information about managing JEs in QBO, please refer to this article: Create a journal entry in QuickBooks Online.

 

I also suggest visiting our website for more tips and other resources you can use in the future. Here's the link: Self-help articles.

 

Don't hesitate to leave a comment below if you have additional questions about this or anything else. I'm always here to help. Stay safe.

Fiat Lux - ASIA
Level 15

How to enter large number of contactor payments in one transaction?

@Eckhardt59 

Utilize Melio to pay for 1099 contractors for free.

https://melio.grsm.io/quickbooks

 

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