These are the commissions you’ve paid outside of a 1099-MISC payment. Heads up : If you paid an independent contractor or freelancer $600 or more for commissions on a project and did not withhold any type of taxes, you are required to send that contractor, and the IRS, a 1099-MISC.

We automatically categorize these transactions for you as commissions and fees:

  • Transaction/processing fees

  • Referral/broker/selling fees

You can also enter these as commissions and fees:

  • Finder's fees

  • Sales commissions

  • Fees for legal referrals

  • Shared commissions (common in real estate)

  • Commissions paid to managers and agents who are not employees

  • Fees for drop shippers

  • Fees for online referrals