Currently we have a number of freelancers who work for us as jobs come up. Some of them we use on a regular basis and have been issued a company credit card to make purchases for the company as needed while out on jobs. The ones who do not have company credit cards make purchases and submit for reimbursement.
My issue is that we pay them for their work and also pay for their reimbursements on the same check. Doing this puts all of their money, both 'earned' and 'reimbursed' onto their 1099. Should we be doing it this way, or should we break out the reimbursed expenses so that we aren't including it on the 1099? If we broke it out would we need to have separate vendors for the two types of pay? Or is this the responsibility of the freelancer to keep his records straight? Thanks,
My issue is that we pay them for their work and also pay for their reimbursements on the same check. Doing this puts all of their money, both 'earned' and 'reimbursed' onto their 1099. Should we be doing it this way, or should we break out the reimbursed expenses so that we aren't including it on the 1099? If we broke it out would we need to have separate vendors for the two types of pay? Or is this the responsibility of the freelancer to keep his records straight? Thanks,