Handling Independent Contractors in QuickBooks

Posted by Dave Dunn on December 10, 2008 | 0 Comments

Tags: QuickBooks Tutorials, QuickBooks, Bookkeeping, Small Business

When setting up independent contractors in QuickBooks, set them up as vendors, not as employees. This is an important distinction. If you aren't certain whether the individual is an employee or independent contractor (and hence a vendor), see my prior blog titled "Independent Contractor or Employee?".

To set an independent contractor up as a vendor in QuickBooks, click New Vendor in the Vendor Center.

Fill in the Vendor Name and Address Info in the New Vendor window. Then move to the Additional Info tab (circled in blue below).

Check "Vendor eligible for 1099" and fill in the Tax ID in the Additional Info tab as you will need this to file their 1099 at year-end.