Paying Contractors
Contractors are separate businesses where Bolt either rents equipment or purchases a service. These could be businesses like truck repair, or someone who drives equipment up to the bay area for us in their own vehicle. This can also include sub-rental vendors. There are a few different steps we need to take when dealing with contractors.
New Vendors In Quickbooks
When we setup a new vendor we must ask for a W-9 and ACH Payment info before we provide payment. This will give us the following information that we will input into Quickbooks.
- Address
- Proper Business Name
- SSN or EIN
When this W-9 is received we will go to:
- Expenses > Vendors > New Vendor Button
- Use the name from their W-9 for payments
- Follow the instructions below to figure out if they need a 1099 issued, if so check the box to track for 1099 tracking. In the flow chart, always assume we will pay them over $600.
- If they require a 1099, enter in their EIN or SSN.
- Type "W-9 (YEAR)" in the notes
- Attach W-9 as an attachment to the vendor.
Then using ACH Info
- Input Routing and Account Number into Bill Pay ACH Info Section.
How to Determine if 1099 is Necessary
If you have paid for it using a credit card you will not need to issue a W9 as the CC Company will issue a 1099-K.
You also do not need to issue a W-9 to any corporations.
The following types of businesses will require a W-9 and for a 1099 to be issued at the end of the year:
- Maintenance/Repair companies
- Freelancers
- Attorneys
- CPA's
- Landlord
- People you pay to do things that aren’t on your payroll
Creating 1099's
At the end of the year we will have to submit these 1099's to the IRS as well as to each individual vendor. Quickbooks makes this easy for us if we have collected the proper information.
- Expenses > Vendors
- In the top right, click "Prepare 1099's"
- Follow the prompts