Please HELP! I'm a temporary staffing agency using Quickbooks for Mac 2011. I use Sub-Contractor's but need to invoice customer with therapist's name & hrs worked. Do I set up my therapist's as vendors or employees as I need to keep track of hrs.
It sounds like you need to go to www.irs.gov and look for the 20 question test to help properly classify an employee vs. an independent contractor. The IRS is REALLY cracking down on companies that call employees a subcontractor and give them a 1099. Then you will know whether the therapist should be set up as a vendor or employee.
Also, workers can file an SS-8 with the IRS if they think they should've been an employee or if they file for unemployment, that can cause problems for you too. Make sure they are properly classified -- it can be a very, very costly mistake.
I am 100% certain that my Therapists are 1099, Independent Contractors as we have already filed SS-8's to be certain. Thanks.
Great! I'm glad to hear you did that! :) So you should set them up as vendors. When you pay them, you can indicate the customer:job and whether it is billable or not.
And for clarity, you should never again use the phrase "1099 employee" as there is no such thing.
There are software solutions in the market like Akken which assist you with setting up QuickBooks for Staffing Industry.
