Contractor Payments Report #

Overview #

The Contractor Payments Report provides a detailed list of payments made to 1099 contractors through Friday within a selected date range.

Each contractor payment appears as a separate line in the report. The report includes payroll, pay period, payday, contractor information, payment method, payment amount, reimbursements, and net pay.

This report is useful for:

• Reviewing contractor payment history
• Reconciling payments
• Preparing bookkeeping records
• Confirming amounts that may be included in year-end contractor reporting

Common Uses #

Use the Contractor Payments Report to:

• Review payments made to contractors
• Confirm when a contractor was paid
• Review the payment method used
• Separate contractor compensation from reimbursements
• Reconcile contractor payments with accounting records
• Review contractor payment activity for a custom date range
• Provide payment details to an accountant or bookkeeper
• Assist with year-end 1099 reconciliation
• Investigate a missing or incorrect contractor payment

How the Report Is Organized #

• Each line represents one contractor payment connected to a payroll.
• If a contractor received multiple payments during the selected date range, the contractor will appear on multiple lines.
• For example, if a contractor received:

– A regular weekly payment
– A separate additional payment
– A reimbursement payment

• Each payment will appear as a separate record.
• The report does not combine all payments for a contractor into one summarized line.

Information Included in the Report #

The report includes the following columns:

| Column | Description |
| ————– | ——————————————————— |
| Payroll | The unique payroll ID connected to the contractor payment |
| Period Start | The first date of the payment period |
| Period End | The final date of the payment period |
| Payday | The date the contractor was paid |
| First Name | The contractor’s first name |
| Last Name | The contractor’s last name |
| Business | The contractor’s business name, when applicable |
| Payment Method | How the contractor was paid |
| Amount | The contractor compensation included in the payment |
| Reimbursement | The reimbursement amount included in the payment |
| Net Pay | The total amount paid to the contractor |

Payroll #

The Payroll column displays the unique payroll ID connected to the contractor payment. This can be helpful when matching the report to:

• Payroll history
• Payment transactions
• Bank activity
• Accounting records
• Support requests

Multiple contractor payments may share the same payroll ID if they were processed together in the same payroll.

Period Start and Period End #

The Period Start and Period End columns show the date range connected to the contractor payment. These dates describe the payment period entered when the contractor payment was processed.

Note: The pay period does not necessarily indicate when the contractor performed the work. It reflects the period assigned to the payment in Friday.

Payday #

The Payday column shows the date assigned to the contractor payment. The payday is important because it is generally used to determine the calendar year in which the payment is reported.

For example, a payment with a payday of December 31 is generally included in that calendar year, even if the related work was performed earlier.

Note: Questions about when contractor income should be reported should be discussed with a CPA or qualified tax professional.

Contractor Name #

The First Name and Last Name columns show the individual contractor’s name. If the contractor was entered as a business, the individual’s contact name may still appear in these columns.

Business #

The Business column shows the contractor’s business name, when applicable. This field may be blank when:

• The contractor is registered as an individual
• No business name was entered
• The contractor operates under their personal name
• The business information has not been completed

A blank Business field does not necessarily mean the contractor record is incomplete.

Payment Method #

The Payment Method column shows how the contractor was paid. Payment methods may include:

Direct Deposit #

• Direct Deposit means the contractor payment was sent electronically through Friday to the contractor’s bank account.

Manual #

• Manual means the payment was recorded in Friday, but the funds were paid outside of Friday.
• Examples may include:

– Paper check
– Cash
– Zelle
– Venmo
– Wire
– Another external payment method

A manual payment is included in payroll records, but Friday does not send the money to the contractor.

Note: Additional payment methods may appear depending on the available Friday features and how the payment was processed.

Amount #

The Amount column shows the contractor compensation included in the payment. This generally represents payment for services performed by the contractor.

• If the contractor received multiple types of compensation in the same payment, the report may combine those amounts into the Amount column.
• Contractor compensation may be included in year-end 1099 reporting, depending on the contractor’s tax classification and applicable reporting rules.

Note: Friday cannot determine whether a specific payment must be included on a 1099. Consult a CPA or qualified tax professional for guidance.

Reimbursement #

The Reimbursement column shows amounts paid to reimburse the contractor for expenses. Examples may include:

• Travel expenses
• Materials
• Supplies
• Mileage
• Meals
• Other approved business expenses

Reimbursements are displayed separately from contractor compensation.

Note: Whether a reimbursement must be reported as taxable contractor income depends on how the reimbursement was documented and the applicable tax rules. Friday cannot determine whether a reimbursement is taxable or reportable. Consult a CPA or qualified tax professional.

Net Pay #

The Net Pay column shows the total amount paid to the contractor.

• In many cases, the calculation is:

Amount + Reimbursement = Net Pay

• For example:

– Contractor compensation: $500
– Reimbursement: $50
– Net Pay: $550

Because contractors generally do not have employee payroll taxes withheld from their payments, the Net Pay may often equal the Amount plus Reimbursement. However, the displayed amounts may vary based on adjustments or other payment details.

Contractor Payments and Tax Withholding #

Contractors are generally paid differently from W-2 employees.

• Friday generally does not withhold regular employee payroll taxes from contractor payments, such as:

– Federal income tax
– Social Security tax
– Medicare tax
– State income tax

Contractors are generally responsible for their own income and self-employment tax obligations.

Note: There may be exceptions, such as backup withholding or other special tax requirements. Friday cannot advise a contractor regarding estimated taxes, deductions, or tax liability. Contractors should speak with a CPA or qualified tax professional.

Contractor Payments and Form 1099 #

Payments to eligible contractors may be included in year-end Form 1099 reporting.

• The Contractor Payments Report can be used to review the payments recorded for each contractor before year-end forms are prepared.

However, this report does not by itself confirm:

• That the contractor will receive a Form 1099
• Which Form 1099 will be issued
• Whether all payments are reportable
• Whether reimbursements are included
• Whether the contractor qualifies for an exception
• Whether the contractor’s tax information is complete

Use the applicable year-end contractor or 1099 report to confirm final reporting information.

Note: Questions about 1099 eligibility should be discussed with a CPA or qualified tax professional.

Manual Payments and Year-End Reporting #

A manual payment is a payment that was made outside of Friday but recorded in Friday for payroll and reporting purposes.

For example, if a contractor was paid using Zelle, a paper check, or cash, the payment can be entered as manual so it appears in the contractor’s payment history.

When recording a manual payment:

• Confirm the correct contractor is selected
• Enter the correct payment amount
• Use the correct payday
• Separate compensation from reimbursements
• Avoid entering the same payment more than once

The payday should fall within the year in which the payment needs to be reported.

Why Does a Contractor Appear More Than Once? #

Each line represents an individual payment. A contractor may appear multiple times because they:

• Received payments on different paydays
• Received multiple payments on the same payday
• Were paid through separate payrolls
• Received a regular payment and an additional payment
• Received both direct-deposit and manual payments

This is expected and does not necessarily indicate a duplicate.

Review the Payroll ID, payday, amount, and payment method to determine whether the records represent separate payments.

How to Review a Contractor Payment #

To review a payment:

1. Locate the contractor’s name or business.
2. Confirm the Payroll ID.
3. Review the period start and end dates.
4. Confirm the payday.
5. Review the payment method.
6. Confirm the compensation amount.
7. Confirm any reimbursement amount.
8. Review the total net pay.

If the payment appears incorrect, compare it with the contractor’s payment history and the related transaction.

Duplicate Contractor Payments #

A contractor appearing more than once does not automatically mean the contractor was paid twice.

Before determining that a payment is duplicated, compare:

• Payroll ID
• Payday
• Pay period
• Payment method
• Amount
• Reimbursement
• Net pay

If all payment details are identical and the contractor should only have received one payment, review the payroll and transaction history or contact Friday Support.

Negative Amounts #

A negative amount may represent an adjustment that reduced a previously recorded contractor payment.

Negative amounts may result from:

• A payment reversal
• A correction
• A voided payment
• A prior-period adjustment
• A refund
• A reporting correction

Review the payroll connected to the negative record and compare it with the original contractor payment.

Contractor Payments Report vs. Other Reports #

| Report | Primary Purpose |
| ———————————- | ——————————————————- |
| Contractor Payments Report | Shows each individual payment made to a contractor |
| Company Payroll Summary Report | Summarizes payroll activity by employee |
| Company Payroll Journal Report | Shows each individual employee paycheck |
| Tax Liability Report | Shows employee and employer payroll tax liabilities |
| Tax Deposits Report | Shows payroll tax deposit activity |
| Positive Pay Report | Provides issued-check information for bank verification |

The Contractor Payments Report is specifically designed for 1099 contractor payments. It is not an employee payroll report.

Contractor Payments vs. Employee Payroll #

Contractor payments and employee payroll are handled differently.

| Contractor | Employee |
| ———————————————- | ——————————————— |
| Generally receives Form 1099 when applicable | Generally receives Form W-2 |
| Usually responsible for their own taxes | Payroll taxes are generally withheld |
| Payment may be made through contractor payroll | Payment is processed through employee payroll |
| Not generally eligible for employee benefits | May be eligible for company benefits |
| Classification is based on legal and tax rules | Classified as a W-2 employee |

The report does not determine whether a worker is correctly classified as a contractor.

Note: Worker-classification questions should be discussed with a CPA, employment attorney, or qualified tax professional.

How to Run the Contractor Payments Report #

1. Log in to Friday.
2. Go to Reports.
3. Select Contractor Payments Report.
4. Choose the desired date range.
5. Select any available filters.
6. Click Run Report.
7. Review or download the report as a CSV or PDF, if available.

Each contractor payment within the selected date range will appear as a separate line.

When to Use This Report #

Use the Contractor Payments Report when you need to:

• Review individual contractor payments
• Review payments for a month, quarter, or year
• Confirm whether a contractor was paid manually or by direct deposit
• Reconcile contractor payments with bank transactions
• Separate compensation and reimbursements
• Review payments before preparing 1099 forms
• Provide contractor payment details to an accountant
• Investigate duplicate or missing contractor payments
• Confirm the payday assigned to a payment

Frequently Asked Questions #

Does each line represent a contractor? #

No. Each line represents one individual contractor payment. The same contractor may appear multiple times if they received multiple payments.

Why does the same contractor appear more than once? #

The contractor received more than one payment during the selected date range, or separate payments were processed through different payrolls.

What does Manual mean? #

Manual means the payment was recorded in Friday, but the contractor was paid outside of Friday.

Does Friday send a manual payment to the contractor? #

No. The company is responsible for sending the funds when the payment method is Manual.

What does Direct Deposit mean? #

Direct Deposit means the contractor payment was sent electronically through Friday to the contractor’s bank account.

What is the difference between Amount and Net Pay? #

Amount represents the contractor compensation. Net Pay represents the total paid to the contractor and may also include reimbursements.

Are reimbursements included in the Amount column? #

No. Reimbursements are shown in a separate column.

Are contractor taxes withheld from these payments? #

Regular employee payroll taxes are generally not withheld from contractor payments. Contractors are usually responsible for their own taxes.

Does this report confirm what will appear on the contractor’s 1099? #

No. It shows contractor payments recorded in Friday, but it does not confirm the final amount or whether each payment is reportable on Form 1099.

Are manual payments included in year-end reporting? #

Manual payments recorded in Friday may be included in year-end reporting based on the payment details and reporting rules. Make sure the payment was entered with the correct payday and was not entered more than once.

Why is the Business field blank? #

The contractor may be registered as an individual, or no business name was entered.

Why is a payment amount negative? #

A negative amount may represent a reversal, correction, refund, void, or adjustment.

Can Friday tell me whether a contractor should receive a 1099? #

Friday can explain how payments are recorded in the system, but cannot provide tax or worker-classification advice. Speak with a CPA or qualified tax professional.

Additional Information #

• Each payment appears on a separate line.
• A contractor may appear multiple times.
• Manual payments are recorded in Friday but paid outside of Friday.
• Direct-deposit payments are sent electronically through Friday.
• Compensation and reimbursements are displayed separately.
• Net Pay generally represents the total paid to the contractor.
• The report may assist with 1099 reconciliation but does not confirm final tax reporting.
• Friday cannot determine whether a payment is taxable or reportable.
• Worker-classification and tax questions should be discussed with a qualified professional.