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.