1099 with Garnishment
I have a 1099 contractor whose payments have a garnishment from IRS. Is there a simple way to be able to report gross payments on 1099. I'm afraid the 1099 will print as net of garnishment which is incorrect.
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dn_VAS0hur3QjyacfA8pyY
11/13/09 8:59am PST
Viewed by asker 12/08/09 9:45am PST
Viewed by asker 12/08/09 9:45am PST
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qbteachmt
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11/21/09 3:30pm PST
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On the payments made to this vendor, you should have been posting the gross to a "service" expense account of some name, and the garnishment as a negative, to a different account (usually a liability account). Then, the amoount you paid to the IRS on behalf of this vendor came from that liability account.
Your 1099-Misc process should map the Box 7 to the service expense account and don't map the liability account. Now you only have the gross that will be reported, since the other account isn't being referenced for purposes of the 1099 process.
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