Adding Payments Made Outside of Friday for Year-End Forms #

Overview #

If you paid a worker before starting with Friday Payroll, you can add that payment into Friday to ensure it appears on their year-end W-2 or 1099 forms. This process applies to both W-2 employees and 1099 contractors. The payment must be entered with a pay date within the same tax year you want it reported.

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For 1099 Contractors #

You can record payments made outside of Friday by processing them through Friday Payroll.

Steps to Record a Contractor Payment #

1. Go to Payroll and start a payroll run.
2. Add the contractor payment amount.
3. Set the pay date to the correct date within the tax year.
4. Process the payment as a check/manual payment.
5. Do not print or issue the check if the contractor was already paid outside of Friday.

This ensures Friday records the contractor payment for inclusion in the year-end 1099.

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For W-2 Employees #

If a W-2 employee was paid outside of Friday, you must enter the payroll into Friday so wages and payroll taxes are recorded correctly.

If the Employee Was Paid Gross Wages #

• Process the payroll in Friday as a manual/check payroll using the gross wage amount that was paid.

If the Employee Was Paid a Net Amount #

If you already gave the employee a net payment, you may need to calculate the correct gross wage amount (a process called gross-up) so Friday can calculate the proper taxes.

Gross-Up Process #

• Use a third-party gross-up calculator to estimate the gross pay needed to result in the net amount already paid.

Steps to Record the Payment #

1. Enter the gross wage amount into Friday.
2. Review the calculated taxes and net pay.
3. Adjust the gross amount as needed until the net pay matches what was already paid.
4. Process the payroll as a check/manual payment.
5. Do not issue another check if the employee was already paid.

This records the wages and taxes in Friday for inclusion on the employee’s year-end W-2.

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If Payroll Taxes Were Already Paid Outside of Friday #

If wages or taxes were already processed by another payroll company or outside of Friday, do not process the payroll again on your own. Instead, contact Friday Support.

When to Contact Support #

• Payroll was processed by a previous payroll provider before switching to Friday
• Taxes were already paid outside of Friday
• Wages were paid and taxed, but need to be included in Friday’s year-end records
• Prior payroll needs to be reported in Friday without re-processing the tax payments

Provide support with the prior payroll details so Friday can help enter the wages correctly into the system. This prevents duplication of wages or taxes.

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Important Notes #

• The pay date must be in the same year as the year-end form you want the payment included on.
• If the worker was already paid and taxes were not paid yet, process the payment as a manual/check payment so Friday records it without sending another direct deposit.
• Do not print or give the check again if the worker already received the money.
• For W-2 employees, wages and taxes must be recorded properly.
• If taxes were already paid through another payroll company or outside of Friday, contact support before entering anything.
• If you are unsure how to gross up a net payment, consult your accountant or payroll advisor.

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FAQ #

Can I add a contractor payment that was made before we started with Friday? #

Yes. Process the contractor payment in Friday as a manual/check payment. As long as the pay date is within the correct tax year, it will be included in year-end 1099 totals.

Will Friday send another payment to the contractor? #

No, not if you process it as a manual/check payment and do not issue the check. This records the payment for reporting purposes only.

What if the contractor was paid by QuickPay, Zelle, Venmo, wire, cash, or another method? #

You can still enter the payment in Friday as a manual/check payment so it is recorded for year-end reporting.

Does the pay date matter? #

Yes. The pay date must be within the year you want the payment reported. For example, if the payment should be included on a 2026 1099, the pay date must be in 2026.

Can I add a W-2 employee payment that was made outside of Friday? #

Yes. If taxes were not already paid, you need to process the payroll in Friday so wages and payroll taxes are recorded correctly.

What if I already paid the employee their net pay? #

You may need to gross up the payment. This means calculating the gross wages that would result in the net amount the employee already received after taxes.

What if payroll taxes were already paid by another payroll company? #

Do not process the payroll again on your own. Contact Friday Support so the prior wages and taxes can be reviewed and recorded correctly for year-end reporting.

What if the wages were paid and taxed, but they were not reported in Friday? #

Contact Friday Support. Support will help review the prior payroll information and assist with recording those wages correctly in Friday.

Does Friday provide a gross-up calculator? #

No. Friday does not currently provide a gross-up calculator. Use a third-party gross-up calculator or consult your accountant to calculate the correct gross wage amount.

Will this be included on the year-end W-2 or 1099? #

Yes, if the payment is entered correctly in Friday with a pay date in the correct tax year.

What if I enter the payment with the wrong pay date? #

The payment may be included in the wrong tax year. Always ensure the pay date matches the year you want the payment reported in.

Should I contact support before entering outside payments? #

Contact support if payroll taxes were already paid, if payroll was processed by another provider, or if you are unsure whether the worker is a W-2 employee or 1099 contractor.