Cutting a non-1099 check for a 1099 vendor


C

Captain Infinity

I work for a trucking company that occasionally cuts "food checks" for our
drivers, usually $20 per night that they are on the road. Their regular payroll
checks are cut by an outside payroll service. To cut an internal food check we
add the employee to the vendor list, and mark him as a 1099 vendor (the food
checks are taxable benefits). However, once in a while we have to cut one of
these vendor-employees a check for an amount that should not be reported on his
1099, for instance if we reimburse him for a purchase he made for the company
using his own cash. How can I separate these special payments so they are not
reported on his 1099? Thanks in advance for your help.

**
Captain Infinity
 
Ad

Advertisements

D

dpb

Captain said:
I work for a trucking company that occasionally cuts "food checks" for our
drivers, usually $20 per night that they are on the road. Their regular payroll
checks are cut by an outside payroll service. To cut an internal food check we
add the employee to the vendor list, and mark him as a 1099 vendor (the food
checks are taxable benefits). However, once in a while we have to cut one of
these vendor-employees a check for an amount that should not be reported on his
1099, for instance if we reimburse him for a purchase he made for the company
using his own cash. How can I separate these special payments so they are not
reported on his 1099? Thanks in advance for your help.
The question came up in a moderated tax group from the other end just a
couple days ago wherein the person received a 1099 that included both
taxable payments and reimbursed out-of-pocket expenses for the employer.
The response was this is OK; employee just deducts his expenses.

So, you can either just continue on and employee compensates or if you
really want to be nice you could make a second entry for each subject
employee that isn't a 1099-enabled payee.

There may be other tricks as well as to accounts from which the payments
are made or similar; I've never had to deal w/ 1099s so don't know all
the nuances of what is possible in QB wrt to them...

hth as a start, anyway...

--
 
Ad

Advertisements

H

Haskel LaPort

Captain Infinity said:
I work for a trucking company that occasionally cuts "food checks" for our
drivers, usually $20 per night that they are on the road. Their regular
payroll
checks are cut by an outside payroll service. To cut an internal food
check we
add the employee to the vendor list, and mark him as a 1099 vendor (the
food
checks are taxable benefits). However, once in a while we have to cut one
of
these vendor-employees a check for an amount that should not be reported
on his
1099, for instance if we reimburse him for a purchase he made for the
company
using his own cash. How can I separate these special payments so they are
not
reported on his 1099? Thanks in advance for your help.
Post the transaction to a general ledger account that is not mapped to a
1099 code.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

myself 1099 for vendor 1
1099 5
1099-DV, 1099-B 3
Glaring issue: Checks to non-Vendors 2
1099 an employee? 20
1099's 2
Is this 1099 valid? 13
ssa-1099 6

Top