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Level 2
June 6, 2019
Solved

Labor and Where to Post

  • June 6, 2019
  • 3 replies
  • 27 views
We have 2 different types of Labor, Labor that we subcontract out, and our own employees that we pay for our in house operations.  It seems like there are 3 different areas where we can input labor costs.  Are there any advantages or disadvantages as to where we input those costs?
Best answer by

The only difference would be whether or not your "employees" are paid on a W-2 or not. If they are the payment is recorded under wages. Independent contractor payments are listed under contract labor regardless of whether they are in house or subcontractors.

3 replies

Answer
June 6, 2019

The only difference would be whether or not your "employees" are paid on a W-2 or not. If they are the payment is recorded under wages. Independent contractor payments are listed under contract labor regardless of whether they are in house or subcontractors.

peter9Author
Level 2
June 6, 2019
OK.  Thank you.  What is the difference between entering either in house wages and/or contract labor on line 37 of the schedule C document, VS.  Line 11 of the Expenses Part II section and Line 26 of the same section?