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A
albinc28
November 6, 2022
Question

I have 1099 contractors, but Quickbooks doesn't deduct the full amount when I enter their paycheck transactions under "Contract labor". Why is it doing that?

  • November 6, 2022
  • 1 reply
  • 0 views
I own my business and have two workers who are contracted under a 1099. They're aware it's their responsibility to pay their own taxes. However, when I enter their paycheck transactions under "Contract labor", it only partially deducts the amount from owed taxes.

For example: I paid an employee $1,651, but QuickBooks removed only $386 from my estimated taxes, meaning I'm out $1,265. Am I missing something?

1 reply

A
Archie_B
November 6, 2022

Hi there, albinc28.

 

It's great to see you in the Community. I'd be delighted to share what I know about categorizing transactions for 1099s in QuickBooks Self-Employed.

 

The Contract labor category is used to categorize the following types of transactions:

 

  • Fees paid to subcontractors and independent contractors
  • Fees paid for additional project support
  • Fees paid for creative resources
  • Fees paid for outside research and data collection

 

Here's an article you can check to learn more about Schedule C and expense categories in QuickBooks Self-Employed.

 

Additionally, if you need to know how QuickBooks Self-Employed automatically calculates your estimated tax, you can refer to this link: Automatically estimate your income tax in QuickBooks Self-Employed.

 

Please leave a comment if you have any further questions or need further assistance with anything. I'll be there to assist you. Have a wonderful week!

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