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john-pero
john-pero
January 10, 2018
Solved

Workers: Vendors vs Contractors

  • January 10, 2018
  • 3 replies
  • 0 views

It seems QBO cannot leave well enough alone. A whole new type pf payee, Contractors has been added and it would apear on the surface that your 1099 vendors must be now moved to or duplicated as Contractor (we all know duplicate names are a no-no so append a period to end of one of the names).  But the Contractor tab does pull over only Vendors designated as 1099 https://community.intuit.com/articles/1637708

 

Of course this will be more confusing to not only small businesses that only have Employees and Vendors (no sub-contractors) that they have no direct dashboard access anymore to their Employees as well as businesses who will think that contractors are employees or worse, will mislabel employees as contractors

 

I guess what bothyers me most, not that one has to collect info to begin with (contractor email) to offer them the opportunity to enter their own info but that one does not get a printed hard copy W-9 to keep in your records. 

      Best answer by nicholasmaalouf

      Hey @Rustler

       

      Thank you for your feedback, I will pass it on to the team. With this first release, the ability to desginate a vendor as independent contractor is now available for Simple Start and Essentials users as well. Not just QuickBooks Plus.

       

      This is so QuickBooks users will not need to add the person again under the workers tab. Simply checking the 1099 box in the vendor profile will cause them to show up within the contractors section. Hope that helps calrify our intentions with the product change. 

      3 replies

      Rustler
      Rustler
      January 10, 2018

      I'm not sure what you are refering to concerning the w-9 and hard copy.  I download the w-9, I hand it to the vendor and when I get it back I scan it as a pdf.

      If you are trying to do it all electroncially, then you really need to also use a web based signature service like right signature or sign now.  Then at least you have some defense if you need it, as to whether or not the correct party actually signed the w-9.

      That workers menu change showed up  a week or so ago in my account - I find it funny.  With all the things they could be doing to make QBO effective, with all the issues and problems it has, they spend the time on useless changes to the interface - again.

      Since only QBO+ can designate a contractor as an independent contract eligable for the 1099 (not all contractors are 1099)  That change should not even be in essentails or simple start - is it?

        N
        nicholasmaaloufAnswer
        January 12, 2018

        Hey @Rustler

         

        Thank you for your feedback, I will pass it on to the team. With this first release, the ability to desginate a vendor as independent contractor is now available for Simple Start and Essentials users as well. Not just QuickBooks Plus.

         

        This is so QuickBooks users will not need to add the person again under the workers tab. Simply checking the 1099 box in the vendor profile will cause them to show up within the contractors section. Hope that helps calrify our intentions with the product change. 

        Rustler
        Rustler
        January 12, 2018
        @nicholasmaalouf wrote:

        Hey @Rustler

         

        Thank you for your feedback, I will pass it on to the team. With this first release, the ability to desginate a vendor as independent contractor is now available for Simple Start and Essentials users as well. Not just QuickBooks Plus.

         

        This is so QuickBooks users will not need to add the person again under the workers tab. Simply checking the 1099 box in the vendor profile will cause them to show up within the contractors section. Hope that helps calrify our intentions with the product change. 

        Are you saying that simple start and essentials can now track vendor expenses and prepare the 1099-misc?

         

        Or is this just a label type of thing in those flavors of QBO?

          N
          nicholasmaalouf
          January 11, 2018

          Hi @john-pero

           

          Thank you for submitting this feedback and sharing your thoughts. I'm one of the product managers who are currently working on this feature. Your input is very valuable and I've shared it with my team as we continue iterating.

           

          S
          suzannek
          January 16, 2020

          So - I still don't know what the difference is as far as QB's is concerned?  Why both?  Being a software app - and an ever changing one - how the program pulls info from these categories is important as it will determine how we users classify vendor and contractor.  So what is the endgame?  This is a need-to-know.

          C
          ChristieAnn 11
          January 16, 2020

          Hi there, suzannek.

           

          Categorizing the person as contractor or vendor is important so QBO can accurately help track payments for tax filings.

           

          If the person works for you as an independent contractor, you should set up that person as a vendor. The general IRS rule is that an individual is an independent contractor if you have the right to control or direct the result of the work but not the means and methods of accomplishing the result.

           

          An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement. Unlike employees, independent contractors do not work regularly for an employer but work as required.

           

          If a 1099 vendor is missing from the list, you can make them eligible for a 1099. Please check this article on how to perform the steps: Add contractors or vendors when preparing 1099s.

           

          Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

          J
          jebsilver
          March 7, 2018

          Is there no way to delete a Worker/Contractor? I added a contractor, regretted the decision, and now I'm stuck with this bogus record and no way to remove it.

          A
          Anonymous
          March 7, 2018

          Hey @jebsilver,

           

          I’ve definitely been in that boat. Go to their profile and make them “inactive” so they don’t show up on lists anymore - by making them inactive, the transactions associated with their work will still show up on the relevant/appropriate reports. 

          J
          jebsilver
          March 9, 2018

          If I go to Workers > Contractors and click on that contractor, I don't see any way to inactivate them. There is a pencil icon to edit their information, but no way to deactivate or delete that I can see.

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