QuickBooks Payroll for Independent Contractors
Payroll for any business is set up for employees, vendors, independent contractors, and clients. In short, all those elements which are needed to be paid for their services, products, and support. This one section is dedicated to Independent Contractors or in QuickBooks terms 1099 Independent Contractors in which 1099 generally points towards the filing of IRS at the end of the year, as the W-2 form is for employees.
At times users do get confused between employees and independent contractors. This is because features and functionality mostly is not clearly defined in black and white; in fact, most of the lines are blurred grey
The main factors of difference between employees and independent contractors are the level of control put on them and the independence to work freely is given. Independent contractors have a high level of independence and are allowed to work more freely. Lesser control over the nature of work and a sense of independence measures the relationship between the worker and the business as an employee.
Direct Deposit Payment for Independent Contractors In QB Payroll
Independent Contractors fall under the category of payroll and are classified with employees as there are certain circumstances under which both employees and independent contractors are scheduled through the same payroll process time and period.
They are also at times paid through the direct deposit method as generally employees are under which the amount is directly transferred to the accounts of the employees and independent contractors. Know how to set up Direct Deposit In QuickBooks Payroll in a few steps.
Collecting the W-9
Under setting up of 1099 Independent Contractors first step is to collect information and fill in details in the W-9 form. This form can be found by going to the top menu bar on the dashboard of QuickBooks Payroll software and clicking on the Tools and Resources page.
The form directly allocates all the information required by QuickBooks for this setup from the user itself. Details like the name of the contractor and business, entity identity, official address along with identification of taxpayer fields are required.
Setting up Independent Contractors in QuickBooks
Once the user has all the required information of the contractor, they next require setting up of them in QuickBooks for which illustrated steps need to be followed:
- Locate the icon of the Vendor Center to enter the same. Another way is to click on the Vendor tab from the menu bar and then click on the Vendor Center option.
- Locate the New Vendor option and then again on the New Vendor tab under which authentic information needs to be provided in the address info button similar to that of the W-9 form.
1. Vendor Setup
At times the contractor also provides their business details like type of business, name of the business, and contractor and this is included in QuickBooks as well. This information is needed by the user when they file for 1099 forms of the contractors.
2. Additional Info
The next move is towards the Additional Info tab under which the user needs to go through the page and provide authentic details correct as it directly affects the mapping of the 1099 form in QuickBooks.
Get More Help Independent Contractors’ Payroll In QuickBooks
QuickBooks Payroll services are quite vast in the terms of tools and features provided to business owners who wish to perform their payroll activities using the software. The best individuals to approach where guidance under this payroll service is the group of professional expert teams set up by Intuit.
They are intensively trained and have proficient knowledge regarding the software to resolve any sorts of problems within the stipulated period.