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January 17, 2022
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Commission and Bonuses Expenses for Independent Contractors

  • January 17, 2022
  • 1 reply
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We are the company that hires Independent Contractors to sell our product. We track their base monthly salary in QBO as Marketing and Sales Expenses, under Independent Contractors Expense, detail type Other Miscellaneous Service Cost. From time to time we pay bonuses and commission, based on their performances. Are we obliged to create a different chart of accounts to track their commission and bonuses, for example, the category called Bonuses and Commission for Independent Contractor's expense? Or we can have all these expenses (salary base, commission, and bonuses under the same category together under Marketing, and Sales Independent Contractors, type Other Miscellaneous Service Cost
Best answer by Rustler

It is your choice, there is no requirement per se for that.  If you are going to use a separate account for the bonuses then I would make that a sub account of the contractor payment account.  And be sure to map that account to the 1099

1 reply

Rustler
RustlerAnswer
January 17, 2022

It is your choice, there is no requirement per se for that.  If you are going to use a separate account for the bonuses then I would make that a sub account of the contractor payment account.  And be sure to map that account to the 1099