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Payroll refers to the tasks an employer must execute to ensure employees are paid accurately and on time. An independent contractor is not an employee; therefore, he's not paid through the payroll.
How to Pay 1099 Contractors in PayrollAdd the contractor by going to Payroll > 1099 Contractors > Add Contractor.Enter the 1099 Type and their FEIN or Social Security/Individual Taxpayer ID number.If you have Patriot's Accounting software, be sure the Pay this contractor in payroll box is checked on their record.More items...
An independent contractor is not an employee; therefore, he's not paid through the payroll. As a small-business owner with both employees and independent contractors, it is important that you know the differences between the two.
Form 1099-MISC is an information return, providing both the contractor or subcontractor and the IRS with taxable income information. Complete Form 1099-MISC with the name, address and tax identification number copied from the IRS Form W-9 for accuracy.
Contractors and subcontractors don't affect your payroll, because they're not employees. When you negotiate a job with the contractor, generally, you agree to pay them a flat fee not a salary or hourly rate.