Lena Ortiz was paid $1,200 for cutdowns. In Pruvon, that payment files to Contractors. It is not payroll, and it is not a tax filing. Pruvon does not file tax returns and is not a CPA firm.

A contractor payment is not payroll and it is not a tax filing. When Lena Ortiz invoices $1,200 for design work, the bank line still looks like any other outgoing charge until you name who it was for.

Start with the bank line, not the tax form

Open the month you are closing and find the $1,200 Lena Ortiz payment. Read the vendor and the amount before you touch the category. Bank data is viewed only. Pruvon never moves money and never files a return for you.

File the $1,200 Lena Ortiz payment to Contractors. Leave the amount alone.

That single choice is the whole job for this line. You are naming the payee type so the month can close cleanly.

What belongs on Contractors

  • Freelancer invoices for project work, like Lena Ortiz design.

  • Named people paid for contract help, not wages.

  • One bank line per invoice — leave the posted amount alone.

  • Outside help billed on their own invoice.

  • Contract charges you can match to a person and a job.

  • A second invoice from the same contractor later in the month.

What does not belong here

  1. Employee wages and payroll runs.

  2. Owner draws to yourself.

  3. Software subscriptions and SaaS tools.

  4. Bank fees and service charges.

  5. Payroll tax holdings kept on a separate line.

  6. Reimbursements that belong on another category after you check the memo.

Money held back for payroll tax sits on a different line. This charge is the contractor. The tax holding, if you keep one, is a separate charge Pruvon does not file.

A short walk through the file

Open the Lena Ortiz line. Set the category to Contractors. Confirm the amount is still $1,200. Save. That is the filing. It does not create a 1099, and it does not replace your accountant.

Before you close the month

Scan for other named people who look like contractors. File each one the same way. If a line is wages, leave it out of Contractors. If a line is an owner draw, use Owner draw instead.

Filing a contractor payment does not file a tax return. Pruvon is not a CPA firm. It does not give tax, legal, or investment advice. Bank data is viewed only and never moves money.

When the same person appears twice in one month

Lena may send a second invoice before you close. File that line to Contractors as well. Do not merge the two payments into one category guess. Each bank line keeps its own amount. If one payment was actually a reimbursement for software she bought, that line may belong on Software instead—open the memo and the receipt before you decide.

  • File each Lena payment to Contractors on its own line.

  • Do not merge two invoices into one category guess.

  • Keep each bank amount exactly as posted.

  • Open the memo before you refile a second charge.

  • Move a software reimbursement onto Software, not Contractors.

  • Leave employment-status questions for your accountant.

If you are unsure whether someone is a contractor or an employee, leave the line open and ask your accountant. Pruvon helps you name the charge for the month. It does not settle employment status or prepare information returns.