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contact168
December 30, 2023
Question

When writing a bonus check to independent contractors, what account should bonuses be under? I'm having a hard time trying to classify or create a new account via COA.

  • December 30, 2023
  • 1 reply
  • 0 views
If being saved under expenses, what would it fall under the tax form section? Also what would be a good account name. I already have one set for commissions. This is in regards to contractors not employees

1 reply

T
Teri11_2
February 12, 2024

Payments to consultants go on 1099's the same if paid for time or bonus, is all same taxable income.to them. (same as for employees on W-2's). Beyond that, if your company wants to see these bonuses in a separate account from the consulting time/services, you can setup a new account for the bonuses. For example, if you use account 5200 for consultant time/services, I would probably setup account 5300 for Consultant bonuses.

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