What should I look for when reviewing the "Payroll and Subcontracted Labor" expense account?

<This article refers to using your  Transaction Detail sheet which is linked in your Dashboard.>

By default, we code checks written to individuals as if they were for a service provided, in which case I will send that person 1099 at the end of the year (please make sure to have service providers sign a w-9 form). The purpose of this review is to identify any transactions that are not for a service provided. Examples would be:

  • Goods purchased.
  • Expense reimbursements.

If a transaction listed here is for either goods purchased or a reimbursement, it’s important you tell us what was purchased, or in the case of an expense reimbursement, tell us the breakdown of expenses reimbursed by creating a Split ( covered in this article).

If when writing a check to someone, you included the words “Expense Reimbursement” in the memo of the check, we still code the transaction to Payroll & Subcontracted Labor. The reason for this is because we don’t know what expenses were reimbursed. So we want to give you the chance to let us know the breakdown using a Split. Once you do, we will recode the transaction to the appropriate place.

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