Cutting a non-1099 check for a 1099 vendor

I work for a trucking company that occasionally cuts "food checks" for our drivers, usually $20 per night that they are on the road. Their regular payroll checks are cut by an outside payroll service. To cut an internal food check we add the employee to the vendor list, and mark him as a 1099 vendor (the food checks are taxable benefits). However, once in a while we have to cut one of these vendor-employees a check for an amount that should not be reported on his

1099, for instance if we reimburse him for a purchase he made for the company using his own cash. How can I separate these special payments so they are not reported on his 1099? Thanks in advance for your help.

** Captain Infinity

Reply to
Captain Infinity
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The question came up in a moderated tax group from the other end just a couple days ago wherein the person received a 1099 that included both taxable payments and reimbursed out-of-pocket expenses for the employer. The response was this is OK; employee just deducts his expenses.

So, you can either just continue on and employee compensates or if you really want to be nice you could make a second entry for each subject employee that isn't a 1099-enabled payee.

There may be other tricks as well as to accounts from which the payments are made or similar; I've never had to deal w/ 1099s so don't know all the nuances of what is possible in QB wrt to them...

hth as a start, anyway...

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Reply to
dpb

Post the transaction to a general ledger account that is not mapped to a

1099 code.

Reply to
Haskel LaPort

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