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 of Quickbooks, but in actual practice, it usually doesn't work well, especially if you have a lot of expense categories or added new ones since the previous year.

Instead, I usually run a detailed transaction report by vendor for the year, export to Excel, and delete extraneous information. I do the same thing to generate information for workers' compensation and liability insurance audits, since I don't want a client to pay comp insurance on materials, and want to remove any vendors who have their own insurance from the information I give to the insurance company.

Tagged With: 1099 Subcontractors,  Liability Insurance,  Quickbooks,  Workers' Compensation Insurance