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sprayer48
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69 Posts
Discussion Starter · #1 · (Edited)
I use qb pro 06. I have a question.
I have two guys I pay cash. Have never recorded their payments before in qb and now I want too.
I have them set up as vendors....when I pay them in cash, how can I record this transaction. use them as a vendor or use payroll...etc.... no 1099's sent...
also under what item and account...
thanks...mark:eek:
 

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Registered
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380 Posts
I actually typed an informative response but somewhere along the line of translation it seems to have been fouled up so I give up with a quick :eek:.
 

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Banned
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14,078 Posts
Where does the cash come from that you are paying them? Are you writing a check to yourself or to cash, cashing it and handing them cash? Or when you say cash do you simply mean you are writing them a check?

** Nevermind, I just saw your double posting of this question with more info.

Employees can't be paid that way.
 

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mustardseed
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30 Posts
Hey Sprayer48, I believe paying your employee cash is not a good idea but certainly legal in Illinois (820 ILCS 115/4) (from Ch. 48, par. 39m‑4) click here for more info and you are also responsible to provide a statement of deduction.
Just set them up as your regular employees in QB. It's not that difficult.
 

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Money Changer
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804 Posts
Hey Sprayer48, I believe paying your employee cash is not a good idea but certainly legal in Illinois (820 ILCS 115/4) (from Ch. 48, par. 39m‑4) click here for more info and you are also responsible to provide a statement of deduction.
Just set them up as your regular employees in QB. It's not that difficult.
All I see there is stating how they are paid. Nothing about 1099 (which is a FEDERAL form).

If these guys are employees who are not getting a 1099 then :no:
 

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Business Consulting
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268 Posts
If you need help with Quickbooks as your first post referenced, I can help, call or email me.

I don't know if you need help with QuickBooks from your post of if you need help determining if the guys you pay are employees or subs.
 

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General Contractor
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3,444 Posts
Try to put a jacket over that tee shirt you're wearing... the one with the big bullseye on the back.
 

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Registered
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929 Posts
QB has a "write checks" icon but not a "pay cash" icon so I get your dilemma. If you're being paid in cash and paying for your laborers in cash maybe you could set up a different"company" in QB which is your cash company. You could record your incoming cash as income and your outgoing cash as expense. How you handle the taxes on this is between you, your accountant and the IRS.
 

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Business Consulting
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268 Posts
The difference between the "write check" and the "pay bills" icons are "write checks" is for when you write a check for something that is not entered as a bill in accounts payable. To pay for the bills you entered in Accounts payable you use "pay bills".

If you are distributing cash to people and it is the company's cash (ie: you took money out of the company bank account and have cash in your hand) you would enter it in the write checks area but instead of a check number, put another reference as you would if you used a debit card. But if you are using company cash to pay for a bill you entered into accounts payable, record it in the pay bills area.

If you are using your own personal cash, it would be a journal entry increasing owner equity (credit) and increasing job expense (debit).

That said, you need to be sure what you are doing is the legal way to do it based on whether these are subs or employees.

It sounds to me like you need a basic class in accounting using QuickBooks. I have a class starting on Nov 2nd on line. No offense, but you are confused, as I would be if I were building a house.
 

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Banned
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14,078 Posts
That's a polite way to put it Sarah, what he needs is a visit from the IRS.

Just another douche bag gaming the system, under bidding others because he doesn't pay legitimate expenses that honest contractors do, and treating employees like employees on the job, but ripping them off by paying them cash and avoiding payroll expenses.

He's far from confused. He has it all figured out.

Times must be tough for you if you are trolling these forums for criminals for customers.
 

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Business Consulting
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268 Posts
Yes, business is very slow, trying to get into the medical industry for software training but I have so many years in construction and don't know medical terminology other than trying to read doctors scribbles, lol.

You just never know, some contractors are in business because they can swing a hammer or build a house and don't hire anyone (or don't teach themselves) bookkeeping basics let alone accounting principles. I don't assume they are dishonest. I just state the facts as much as possible. If I find out different, they are no longer a client of mine.

My on line class is a small fee to pay to get a grasp on the basics. One of your other posters took the class and was happy he did. Many people find me via this website and I really appreciate it, some just call to ask a question, others for consulting services. I try to offer my comments here to help people out, as you noticed, when I have time.
 

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Money Changer
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804 Posts
If you are distributing cash to people and it is the company's cash(ie: you took money out of the company bank account and have cash in your hand) you would enter it in the write checks area but instead of a check number, put another reference as you would if you used a debit card. But if you are using company cash to pay for a bill you entered into accounts payable, record it in the pay bills area.

If you are using your own personal cash, it would be a journal entry increasing owner equity (credit) and increasing job expense (debit).
Is this not a disbursement from petty cash? And therefore QB has an account for that.
 

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Business Consulting
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268 Posts
It could be recorded in the petty cash register, yes, if they have one set up.
 
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