How should I record reimbursal of travel expenses for a contract employee so it won't appear on 1099?

Thanks for dropping by the Community, @Darshane.

I can guide how to record the reimbursement of travel expenses for a contract employee in a way that won't appear on the 1099 form.

You can first create a new expense account for your non-taxable reimbursement. 

Here's how:

1. Go to Accounting, then Chart of Accounts.
2. Select New. Then, choose "Expenses" or "Other expense" as Account Type and enter the Account details.
3. Click Save and Close.

After that, record the reimbursement using that account. Like this:

1. Go to +New, then Check or Expense.
2. Look for the account you've just created under the Category column, and enter other information in the Description field.
3. Click Save and close.

By doing this, you will be able to record the reimbursement without including it on the 1099 mapping. 

You can also check these articles to learn which payments are excluded and how it is categorized for 1099-NEC and 1099-MISC: 

• Understand which payments are excluded from a 1099-NEC and 1099-MISC.
• Understand payment categories for the 1099-MISC and 1099-NEC

If you have any further questions or need additional assistance with 1099 payments and reimbursements, please let me know. I'm here to help!

@kaleidoscopevoca 

You can signup for a free Melio account to integrate with QBO and pay the reimbursement to the contract employee. As I know reimbursing employees is a legitimate business expense. So whether it's for flights or filling the fridge, you can use Melio to reimburse your employee quickly and easily. I recommend that you don’t use a credit card to reimburse an employee due to possible credit card restrictions. Just remember to leave a memo (and any documentation, if available) either for yourself or your employee. Melio will be able to process the payment much faster if they know what it’s for.

https://affiliates.meliopayments.com/quickbooks

You can also get $100 cashback to pay the first bill.

https://affiliates.meliopayments.com/cashback