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Level 1

When creating a new 1099 expense account in chart of accounts, what account TYPE do I select?

I understand the process to set up a new 1099 contractor. However, I do not understand what type of account to select when creating the expense account in chart of accounts.
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Community Champion

When creating a new 1099 expense account in chart of accounts, what account TYPE do I select?

The expense account is whatever the expense is, you do not need any new accounts. When you run the 1099 wizard you will select which expenses for each 1099 contractor are to be included or excluded.

 

Example, you hire a painter who separately charges you for time and material. You could separate on the bill the supplies from painting or you could charge it all to repairs/maintenance but in general you can report all payments to an eligible 1099 sub as they would have to report it all as income even if you did not give them a 1099

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Level 1

When creating a new 1099 expense account in chart of accounts, what account TYPE do I select?

Thank you for replying so quickly. I'm sorry, I'm still having trouble. I'm paying my contractor essentially for labor, not materials. So, what expense account do I use for that?

Highlighted
Level 1

When creating a new 1099 expense account in chart of accounts, what account TYPE do I select?

Thank you for responding so quickly, but I'm still having trouble understanding. I am paying a contractor essentially for labor only, as I am providing supplies and materials. What expense account do I use for that? Also, how do I know whether or not an account would be linked to the 1099 wizard?

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