- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Other questions
Thanks for getting back to us, @khite.
You can set up your contract employee as a vendor. Then, create an Other Current Liability account to track the money you paid for state taxes when creating a check. However, I'd still suggest consulting your accountant to confirm which account you'll use to ensure your books and taxes are accurate.
Here's how to add an account:
- Go to the Lists menu at the top.
- Select Chart of Accounts.
- Choose the Chart of Accounts button at the bottom, then click New.
- Under the Other Account Types drop-down, choose Other Current Liability account.
- Click Continue.
- Enter the Account Name and other details.
- Add an Opening Balance if applicable.
- Click Save & Close.
You can check out this article for more information: Chart of Accounts.
Then, make sure to turn on the 1099-MISC feature by performing the steps provided by JonPril_L above. Once done, you can set him/her up as a vendor. Here's how:
- Go to the Vendors menu at the top.
- Select Vendor Center.
- Choose the New Vendor drop-down arrow, then click New Vendor.
- Enter the vendor's name.
- On each tab, enter information as needed.
- You can edit the vendor to add more information later.
- Click OK.
For more information, here's a great article you can refer to: Set Up A 1099 Vendor and Print Forms.
This will get you going, @khite.
I'm here anytime you have other concerns. Have a good day.