I have several 1099 contractors. On a few, I have had to do witholding from IRS levys. When I run the 1099 report, it subtracts the withheld amount from their 1099 amount. How can I change their reported 1099 amount to include the amount withheld for
On the details on the payment transaction, you enter the full amount of items or Expenses, as if you are paying in full.
Then you reduce it by a negative, posting to an Other Current Liability.
Use Re-calc button, to get a Net payment.
This way, the 1099 gets the total.
You send on the garnishment by writing the check and posting from the Other Current Liability account. This makes the balance $0 and show you cleared the liability, and sent it on.
That's exactly how I set it up, but the 1099 report shows a minus "uncatagorized" amount, and subtracts it from the total.
If you put the minus into the same expense account, that would be the error. Or, if you mapped the holdback account (liability) that would be an error. Only map your actual expense accounts for the services you paid for.
But the uncategorized as a minus is okay. That is not the 1099 amount. That is showing you there also is some money not being considered. It isn't supposed to be on the 1099, so this is not an error; this is confirmation. As long as the Box 7 amount is the full amount, you are fine.
