Payroll for any business is basically 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. Of this one section is dedicated to Independent Contractors or in QuickBooks terms 1099 Independent Contractors in which 1099 generally points towards filing of IRS at the end of the year, as 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 as black and white; in fact most of the lines are blurred grey.
Main factors of difference between employees and independent contractors are the level of control is put off them and independence to work freely is given. Independent contractors have high level of independence and are allowed to work more freely. Lesser control over the nature of work and sense of independence measures the relation between the worker and business as an employee.
Independent Contractors fall under the category of payroll and classified with employees as there certain circumstances under which both employees and independent contractors are scheduled through same payroll process time and period. They are also at times paid through 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 setup Direct Deposit In QuickBooks Payroll in few steps .
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 top menu bar on the dashboard of QuickBooks Payroll software and click on Tools and Resources page. The form directly allocates all the information required by QuickBooks for this set up from the user itself. Details like name of the contractor and business, entity identity, official address along with identification of taxpayer fields is required.
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:
At times the contractor also provide with their business details like type of business, name of the business and contractor’s and this is included in QuickBooks as well. This information is needed by the user when they file for 1099 forms of the contractors.
The next move is towards Additional Info tab under which user needs to go through the page and provide authentic details at correct as it directly affects the mapping of 1099 form 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 team set up by Intuit. They are intensively trained and have proficient knowledge regarding the software to resolve any and all sorts of problems within stipulated time period. If you face any issue, QuickBooks Payroll support team can be called upon for resolution. In case urgency alternative option is to connect with QuickBooks Payroll third party agencies like QBPayrollHelp through their website – QBPayrollHelp or calling on toll free number – 1844 827 3817.