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    3 Replies Latest reply on Jan 1, 2009 2:34 PM by LUCKIEST

    Making payments to vendor?

    CorpTek Wayfarer

      I am running an IT consulting company and I hired a sub contractor from X company who is working at the client place. In order to make the the payments to X company what is the best way?

      I am receving invocies from X company and for that just sending a check with invoice number is enough or do I have to put on 1099 or .........?

      Please advise.

        • Re: Making payments to vendor?
          Lighthouse24 Ranger

          This would be a 1099 independent contractor IF he/she were self-employed and doing work on a contract between the two of you. However, it sounds like this person is an employee of Company X (or perhaps an independent contractor for Company X), and that you have a contract with that company to provide you with a qualified resource -- in which case you just pay the invoice (and Company X takes care of properly classifying and paying the person). If that's the case, it's much the same as if you called a services firm to fix a plumbing problem in your home or office -- the plumber who shows up doesn't work for you, he/she works for the services company you called. You just pay the bill for the service provided. Hope that helps.
          • Re: Making payments to vendor?
            LUCKIEST Guide
            Making payments to vendor??, Welcome Venka

            Lighthouse always has great answers.

            Tell me more. How long have been in business?? Do you have an Accountant??

            Happy New Year, LUCKIEST