Setting Up 1099 Driver Pay
- Dr. Dispatch is capable of processing pay for drivers who are paid on a contract (1099) basis. Taxable wages that are reported on a W2 at the end of the year cannot be exported to QuickBooks due to a multitude of security reasons.
- In the 'Driver Info' section, ensure that 'OwnerOp' is selected as the driver type and that '1099 Eligible' is checked.
- Open the chart of accounts in your company QuickBooks file by either using the list menu or CTRL + A on your keyboard.
- Ensure there is an expense account for 'Driver Pay' (1099). If there is no account, right-click on the chart of accounts and select 'New".
- Select 'Expense' for account type and give it a name such as 'Driver Pay 1099' or 'Owner-Op Pay'.
- Press 'Save and Close' to finish.
- Open Dr. Dispatch and select System-> Settings -> QuickBooks set up.
- Press the 'Setup Now' button then go to the 'Manage Accounts' tab and ensure you have selected the 'Trucking' tab.
- Dr. Dispatch can export the driver pay to QuickBooks as either a check to be printed or a bill to be paid. We strongly suggest you use the check option which will appear as 'Send Drv Pay as a Check'. If you choose to use the bill option, ensure that you perform the proper Bill Pay procedures in QuickBooks.
- In the upper left corner of the screen, make sure you have checked discounts for factoring and payments for advances if you use these features.
- With the proper QuickBooks company file still open in the background, press the 'Refresh' button and wait until all the fields populate.
- All of your prior items and accounts should return after refreshing the setup screen. You have simply added a new feature to the existing list.
- Select a value for the '1099 Drv Pay Acct' from the drop-down list.
- Press 'Save Changes' and exit the 'QuickBooks Setup' screen.
- To test this feature, open the 'Driver Payroll'feature in Dr. Dispatch and select a driver with 1099 status that has a record processed then select one or more loads to process.
- Ensure there is a checkmark in the 1099 box on the right side of the screen after choosing the driver. If there is no checkmark, you must enter it on the 'Driver Pay' tab. This action cannot be completed on the 'Driver Payroll' screen.
- Process the loads you have marked, print the process, close the print screen and select 'Yes' when asked if you want to process payroll.
- There should now be a 'QuickBooks Export' button on the right side of the 'Driver Payroll' screen. Press this button to see a new payroll process entry annotated with a settlement number for future reference.
- Upon successful completion of exporting, the records will change from blue to green.
- A print dialog will open and prompt you to print a paper copy of the payroll records you just exported. Print this report and file accordingly for future reference.
- If you opted to process the driver pay as a check, the check number for the settlement in your QuickBooks check register will read 'To Be Printed'.
- Important: All of the 1099 amounts exported from Dr. Dispatch to QuickBooks will be net pay amounts since advances will automatically be deducted. These amounts will not be gross pay amounts. Gross pay will be summarized at the end of each calendar year through a separate Dr. Dispatch payroll process.
For information on initial integration setup, please see:
QuickBooks Integration: Trucking Setup
QuickBooks Integration: Brokerage Setup