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By Richard Rost

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Read Vendor and Customers by Dana @ 6/19/2015

Sub Contractors are Vendors - not employees - It is never a good idea to pay a subcontractor's license fee - From experience I have found subcontractors often have trouble making the transition from employee to vendor and the resulting bookkeeping is a little overwhelming. If you insist on paying their license fees - Have them bill you for the license fee - as a vendor and pay that bill - having them actually pay the licensing authority.

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Read Vendor and Customers by Oozy @ 2/22/2014

Hello,

Can you please help me out in setting up this scenario. I have a contracting company that depends on outside subcontractor individuals. Those individual provide services to me and I pay them when ever the job is done. I do sometime services for those subcontractors such as renew their licenses, etc.

Therefore, sometime either they pay me installments or leave some of their money with me to pay the fees for their licenses renewal.

I am not sure how to handle them in Quickbooks. Should I consider them employees, vendors, etc?

How to receive payments (the installments) from them. What should I do when I renew their licenses and pay the fees for them?

For sure the licenses fees are not expense on my business because the fees are mainly paid by the subcontractor.

Can you please shed some light here about how to handle the above scenario

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