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Simple Bookkeeping
Mar 22, 2021 5:41 PM UTC
Question

Insurance Premiums

My client pays insurance premium for all his 1099 works in bulk and then deduct the insurance expense from their monthly payments. How do I record the deductions as income to the client. Even though he is paying upfront cost he is getting back in the form of deduction from their monthly invoice. Thank you.

 

2 replies

CharleneMaeF
Mar 22, 2021 7:50 PM UTC

I'm here to help you track the deduction as income, Simple Bookkeeping.

 

To do this, let's add another line in the check or bill transactions. Then, select the income account and enter the amount as negative.

 

I'd suggest following these steps if you'd like to create a check.

 

  1. Go to the + New menu.
  2. Select Check.
  3. Choose the payee.
  4. Under Category details, enter the details of insurance on the first line.
  5. On the second line, select the income account, then enter the amount as negative.
  6. Once done, click on Save and close.

 

If you'd like to create a bill, you can follow these steps:

 

  1. From the + New menu, select Bill.
  2. Choose the payee.
  3. Under Category details, enter the details of insurance on the first line.
  4. On the second line, select the income account, then enter the amount as negative.
  5. Once done, click on Save and close.

 

For further guidance, please see this article:  Manage Expenses in QuickBooks Online.

 

I've also added this article that'll help your client run vendor reports. This will help see the vendor their payments: 1099 Report.

 

In case you'll need assistance in managing QuickBooks transactions, please reach out to us. We're always here to help you out.

CharleneMaeF
Mar 23, 2021 5:44 PM UTC

Hi Simple Bookkeeping,

 

Hope you’re doing great. I wanted to see how everything about recording the deductions of your client as income. Was it successful? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

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