non employee setup

[kidworx]

I am trying to set up a new non employee. I read the instructions, read the forum, and watched the tutorial. I have everything setup just like it says. It will not calculate a pay. I know what the pay should be, but I need it in the system for the 1099 at the end of the year. I put all the employee info in, pay rate and set all tax tables to no with holding, non employee category, is there something I'm missing?
Thanks

[Paul Mayer]

A non-employee payee is a contract worker that actually should give you an invoice when the work has been done and to pay, you enter the dollar amount. Since it is not an employee, there are no taxes or deductions just the dollar amount they gave you the invoice for.

See this page on how to pay the non-employee worker in the help file:

http://zpay.com/pw-online-help/module_11_4.htm?mw=MjMw&st=MQ==&sct=Mzc2&ms=AAA=

[kidworx]

Thank you. I was trying to do put in her hours and let it calculate it based on her per/hour rate.

[Paul Mayer]

You don't want to do that as they'd be an employee then. You have to be careful when you declare a person as a non-employee payee. I personally learned the hard way when I owned a photography studio years ago when we had and audit and had to pay a huge sum in back taxes. We had photo retouchers that we paid as non-employee workers. The auditors found that they came to our location, used our retouching room and our supplies. That made them employees and we had to pay the back taxes for like six years back as I recall. So be very sure that they are not employees when you pay them as non-employee workers.