Frequently Asked Bookkeeping Questions

Are independent contractors required to have their own liability insurance?

Generally no. However, you may decide NOT to work with independent contractors who don't carry their own insurance, especially if they are providing services which would be expensive for you to…

Do I have to carry workers' comp insurance for 1099 vendors?

Most insurance companies will require that you provide worker's comp insurance for anybody you issued a 1099 for, unless you have a certificate of insurance from them showing they had their own…

How do I change someone from a subcontractor to an employee or vice-versa in Quickbooks?

The best thing to do in Quickbooks is make a new vendor or employee. So if you had a subcontractor named John Smith, but now he's an employee, make an employee named "John J. Smith", or "John Smith -…

How do I track subcontractor payments in Quickbooks?

You should enter their bills or payments as multiple line items, using separate expense accounts for materials and labor. At the end of the year it is theoretically possible to print 1099's right out…

What does an Employee REALLY Cost?

Even VERY part-time employees, with no paid breaks or other paid time off or any benefits, will cost substantially more than their hourly rate. Initially, there is the cost of hiring and training,…