Hi there, @GTM Dawn.
Thank you for joining the Community. I'd be happy to help share some information about setting up a subcontractor in QuickBooks Online.
Generally, you pay a contractor using an expense account. This way, QuickBooks tracks these payments and adds it to the contractor’s when you create the 1099 form.
Expenses for products and services need to be clearly differentiated from the work they do as a subcontractor. You can create multiple expense accounts to map those transactions easily.
Here's how to set up a new Expense Account to track subcontractor expenses:
- On the left pane, select the Accounting tab.
- Select Chart of Accounts.
- In the upper right corner, click New.
- Select Expenses as the Account Type and choose a Detail Type.
- Enter a unique account name to remember them easily.
- Click Save and close.
Moving forward, every time you enter an expense or a check to them, you can select the account you want based on the service they provide.
I've attached some articles below for additional details, as well as screenshots for additional reference:
That should point you in the right direction. Please know that I'm just a post away if you have any other questions about setting up contractors or while working with QuickBooks. I'll be happy to help you further. Have a great day ahead.
