1099 & Garnishment

How would you get gross 1099 earnings on the form when a portion is paid to the independent contractor and a portion to the state?

The solution I came up with is to set up a bank type account I'll call garnishment. Pay the independent contractor the state's portion from the garnishment bank account. Pay the remaining balance due the independent contractor from a regular bank account. Pay the state from a regular bank account and charge the payment to the garnishment bank account.

Any one have a better solution?

I searched this group before posting. A few years ago, some of the usual suspects thought a garnishee had to be an employee. Let's not revisit that.

Macy

Reply to
Macy
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I do.

Reply to
Allan Martin

One more thing, your method sucks big time. What in the world were you thinking. I am always amazed by how much extra work end users make for themselves.

I am offering the Allan Martin Black Belt to the person or persons who come up with the same method I have.

Reply to
Allan Martin

Here's how I would do it....Cut a check for the ICs for the net amount. Then cut a second check using the ICs vendor name but change the address box to be the state agency.

I'm not sure it would fly with the state but I am drawing a blank as to how to cut 2 checks for the same vendor ID with different "to the order of" entries.

If I was to use 2 vendor names I could fudge the numbers at year end so the gross amount showed up under the ICs name so that is always an alternative.

Reply to
Laura

You left out the part where you would also get up at 5:00 AM each day and sacrifice a live goat to the Intuit Gods.

This makes me want to roll up a newspaper, wet it, and smack you upside your heard and "yell bad end user, bad end user".

No black belt for Laura today.

Keep it simple folks, keep it simple.

Reply to
Allan Martin

A usual suspect showed up.

Reply to
Macy

Found the following at the Quickbooks community support web (the one you get to through QB help):

There was also a mention to use account mapping for 1099's -- meaning, I suppose, don't map the garnishment account to the 1099. Worked for me, when I tested it.

-Mark Bole

Reply to
Mark Bole

Yes, that is what I am talking about. The Allan Martin Black Belt goes the Mark. Be proud Mark you habve distinguished yourself.

Naturally mapping the liability to a 1099 account makes no sense. QB will treats the negative offset to the liability account as an instant payment of the vendor's gross, as it should.

This solution is simple to the point does not involve setting up an extra bank account (What was she thinking?) or changing addresses and no goats have to be harmed.

Reply to
Allan Martin

Reply to
Macy

If you are refering to me Allan, I am a he.

Macy

Reply to
Macy

I stand corrected.

Reply to
Allan Martin

My new signiture line for this group. Thanks Allan

Macy >

Reply to
Macy

I believe you are referring to the Allan Martin Black Heart, not belt.

Reply to
Gil Faver

"Gil Faver"

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Reply to
Allan Martin

Allan, are you saying I would not have received an answer without your intervention? If so, thank you.

Is there a way to cut out the middle man? If so, please explain.

Macy On Mon, 4 Feb 2008 09:54:17 -0500, "Allan Martin" wrote: "I stand corrected."

Reply to
Macy

It has been tried, but to no avail.

Reply to
Gil Faver

No explaination, just depends on how the wind is blowing when I wake up in the morning.

Reply to
Allan Martin

In accounting, it doesn't make any difference.

Reply to
HeyBub

It's good that you've inspired people to sort this issue out. If one presidential candidate gets elected, wages may have to be garnished under the candidate's mandatory health-care plan.

Reply to
HeyBub

There is always hope that my boy Newt becomes the next president.

Reply to
Allan Martin

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