What you owe each subcontractor
Approved hours at cost against what you have paid, per period with the balance carried, the payment recorded from the row — and the 1099 threshold that applies to the year.
You approve a subcontractor’s hours on Timesheets, and you record what you pay them as an expense. The product had both halves of what do I owe Bennett Mechanical and never put them on one line.
Owed against paid, per period. Timesheets has a second view, Subcontractor pay: for the pay period, each subcontractor with the hours a Manager approved and what they come to at the cost the entries were logged at — earned — beside the expenses recorded to them — paid — and the balance, which carries across periods, so an unpaid week is still owed next month. Hours not yet approved are shown as pending and count for nothing until they are; the figure is what was signed off. Open a row for the entries and the payments behind it.
Record payment, from the row. It opens the ordinary expense form filled in — the balance, the subcontractor, Contract Labor, their business name, a description naming the period — so the payment is the same record your tax summary, your QuickBooks export and your 1099 CSV already read. There is no second kind of payment to reconcile. A CSV of the view is in Import & export.
The right 1099 threshold for the year. The reporting threshold for Form 1099-NEC is $600 for payments made through 2025 and $2,000 for payments made in 2026 onward. The product had carried $600 since the day it was written; now the tax summary, its CSV, a worker’s year-to-date figures and the pay view’s year tab judge each year by the year’s own figure and say which one they used.
Their own line. A subcontractor who signs in sees, on their week, what their approved hours come to and what has been recorded as paid — their figures and nobody else’s. Employees see nothing new; their pay is payroll’s business. On every plan.