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madison-arnoldroofs
September 6, 2023
Question

1099 Subcontractors

  • September 6, 2023
  • 1 reply
  • 0 views

I have tried Googling an answer to this and could not find what I was looking for..

 

I work for a roofing company and all of our sales reps are 1099. If we wanted to legally allow them to have access to our office equipment or software, could they pay us a monthly fee to have the access? I know we are not permitted to supply them with anything and we want to make sure we are operating appropriately given their classification. 

 

Thank you!

1 reply

Q
QueenC
September 6, 2023

Hello there, Arnold.  Thank you for reaching out to us with your question. I want to acknowledge and appreciate the effort you have exerted in trying to find an answer on your own. It shows your dedication and commitment to ensuring that your roofing company operates in a legally appropriate manner. No worries, as I'm here to assist you and provide answers to your queries about your contractors and the charges related to the equipment they use.

 

In QuickBooks Online (QBO), you can easily track the equipment used by your contractors and allow them to pay for it. However, you have the best say in whether you'd like to do it within QuickBooks or have an agreement with your contractors for both of your convenience. 

 

In case you decide to record it within QuickBooks, we can start by creating an account to track the equipment expenses. Here's how:

 

  1. Go to the Gear icon then select Chart of Accounts.
  2. Click on New to create a new one. 
  3. Choose the appropriate account type (for example: Fixed Asset or Other Current Asset) and provide a name for the account ( for example: Contractor Equipment).



    Note that it's crucial to consult with a legal professional or accountant who can provide guidance based on your specific circumstances and make sure that we're choosing the appropriate account.
  4. When done, hit Save.

 

After creating a new account where we can track the equipment expenses by your contractors, we can now enter or record a billable expense. Note that this feature is only available in QuickBooks Online Plus and Advanced and needs to be turned on first. For more information about the process, feel free to check out this article: Enter billable expenses in QuickBooks Online.

Additionally, when the contractor pays for the equipment charges, you can now record the received payment in QuickBooks.

Moreover, I've included an article that'll help you learn how your contractors can add their own 1099 tax info: Invite a contractor to add their own tax info in QuickBooks Online.

 

If you have any further questions or need additional assistance, please don't hesitate to ask. We are here to support you in ensuring that your roofing company operates seamlessly. Keep safe and have a great rest of your day.

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