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6 juil.

How to Pay Independent Contractors in Quickbooks Online

When it comes to managing your small business, keeping track of how you pay your independent contractors is an important part of staying organized. QuickBooks Online is a powerful tool that can help make this process easier and more efficient.

Here are the steps to paying independent contractors in QuickBooks Online:

1. Add the independent contractor as a vendor. Navigate to the “Vendors” tab and select “New Vendor”. Fill in their information, including their name, email address, and payment terms. QuickBooks Online will automatically create a new account for the independent contractor.

2. Record the contractor’s time and expenses. If you are paying the contractor for their time or reimbursing them for expenses, you will need to record this information in QuickBooks Online. Navigate to the “Expenses” tab and select “New Expense”. Choose the contractor’s name from the “Payee” dropdown menu, and fill in the details of the time worked or expense incurred.

3. Create a bill payment. Once you have recorded the time and expenses, you can create a bill payment to pay the contractor. Navigate to the “Expenses” tab and select “Bill Payments”. Choose the bill that corresponds to the payment you want to make, and select the contractor’s name from the “Payee” dropdown menu. Fill in the payment amount and the payment date.

4. Choose the payment method. QuickBooks Online offers several payment methods for paying your independent contractors, including checks, direct deposit, and credit card. Choose the payment method that works best for your business and fill in the necessary information.

5. Review and submit the payment. Once you have filled in all the necessary information, review the payment details to ensure accuracy. Click “Submit Payment” to finalize the payment.

By following these steps, you can easily pay your independent contractors in QuickBooks Online. Keeping track of these payments will help you stay organized and save time in the long run.