Why am I not seeing my contractor payments on my PL. Are they be an expense or payroll? They are setup with dir deposit and I see the payments going out of my DDA?

Hello there, Parkersauto. Let me explain why contractor payments appear on your Profit & Loss in QuickBooks Online (QBO).

Contractor payments are classified as expenses rather than payroll wages, even when paid through direct deposit. When correctly set up, these payments appear as expenses in your Profit & Loss report on an accrual basis.

Here are the things to double-check and fix this:

1. Check that the contractor payments are mapped to an expense account, not a liability account.
2. Run your Profit & Loss on an accrual basis to see if the expense appears, which helps determine the timing issue.
3. Verify that the report date range includes the payment date.

I’m also sharing this page, which offers answers to frequently asked questions about Form 1099, including how to review your 1099 vendors and their payments: Common Questions about 1099s.

I suggest considering our QuickBooks Live Expert Assisted service to enhance your QBO Payroll experience. Our knowledgeable team of experts stands ready to provide immediate support tailored to your contractor's concerns.

We are available anytime you have concerns about managing your contractors.