1st Time User: Paying Nonemployees

[NancySlover]

I have several nonemployee workers who should not have taxes withheld and will be given a 1099misc at the end of the year. The directions in the manual said: "Open the Payee to pay and enter the amount to pay in the middle column in the Earnings data entry and press the Tab key on your keyboard to calculate the net. Save & close and you are done." But when I "save & close" I get the message: "You did not click the Pay Button. You must go back to calculate the Taxes. Click "OK" to continue " So I have to click Pay button then go back and delete taxes and change net pay. Is that how it is supposed to work? Thanks.

[Paul Mayer]

I missed a few words and will have to correct the help file. I should say:


"This is the simplest to explain. Open the Payee to pay and enter the amount to pay in the middle column in the Earnings data entry and press the Tab key on your keyboard to calculate the net and click the Pay button. Save & close and you are done."

Thanks for reporting that.

[NancySlover]

Well, after I click the Pay button, the taxes are deducted and the net is changed to after tax amount. I have to go back and delete taxes and change the net back to the original amount. I can do that but thought there was an easier way. I don't want any deductions, just need my earnings to equal the net pay. Thanks.

[Paul Mayer]

You missed something in the setup as that is not what happens with a Non-Employee Worker. See the setup instructions for that type of payee in the help File:

http://zpay.com/pw-online-help/module_10_3.htm?mw=MjMw&st=MQ==&sct=MjMy&ms=AAA=

Read that entire page for the different items. Item 3 is set to be Non-Employee in particular. Here is an example from our sample company file that was installed with PayWindow:

158

[NancySlover]

I see where I went wrong. I didn't put yes for Exempt from taxes. Thank you!

[Paul Mayer]

The *most* important part is that Emp. Type being "N" for Non-Employee Payee as without it, you will get a W2 Form and not a 1099 Form. If you paid that person, delete the transaction set the date and repay it after making sure the settings are correct.

[NancySlover]

I had the "n" for nonemployee correct but I had not changed the "all no" to "all yes" in the exempt from taxes area. I have now done that but do I need to repay them now?

[Paul Mayer]

Yes, delete the payroll transactions for that person and set the date and re-pay them now that it is setup correctly.

See this FAQ in deleting a transaction:

http://zpay.com/vbulletin/showthread.php?1405-How-to-Delete-a-Transaction

[NancySlover]

Okay, I deleted and repaid and checked the taxable wages on the reports and looks like I'm okay now. Thanks so much for your help!