@Carl wrote:
If wages for subcontractors to whom you did "NOT" issue a 1099-MISC, then you can include it as cost of labor in the COGS section.
Wages are payments made to an employee by an employer; not to subcontractors.
Regardless, if payments made to subcontractors are $600 or more then, with limited exceptions, a 1099-MISC is required to be filed.
Further, if the labor costs are tied directly to the production of goods, they can be factored into the cost of goods sold equation.
